The International Grains Council (IGC) published new supply and demand forecasts for wheat and corn yesterday. The IGC raised its estimate for the global wheat crop by 10 million to 720 million tons, meaning that global wheat production is expected to achieve last year's record level. Reasons for the upward revision of the production estimate include Russia (+4 million tons), Ukraine (+3 million tons) and the EU (+3.4 million tons).
Global wheat demand was likewise revised up 4 million tons to 716 million tons. According to the IGC, this will result in an annual surplus of 4 million tons in the current crop year. The wheat price responded by falling for a time to 481 US cents per bushel and closed - despite recovering slightly - a good 1% down at 484 US cents per bushel, notes Commerzbank.
