OVERVIEW

Global production in 2016/17 is nearly unchanged. Global trade is nearly unchanged as lower imports for the EU mostly offset higher demand from Brazil and Vietnam. The U.S. season-average farm price is unchanged at $3.70 per bushel.

U.S. PRICES:

During October, U.S. wheat FOB quotes were largely range-bound, showing little change over the month. Reports of reduced crop quality in Australia and Canada have not significantly affected U.S. prices in light of abundant global supplies and lowered expectations of domestic wheat feeding. Hard Red Winter (HRW) declined $2/ton to $193, while Soft Red Winter (SRW) rose $1/ton to $187. Soft White Winter (SWW) lost $3/ton to $195 and Hard Red Spring (HRS) is down $1/ton to $249.

TRADE CHANGES IN 2016/17

Selected Importers

  • Brazil is raised 300,000 tons to 6.6 million on the stronger pace of trade.
  • European Union is lowered 500,000 tons to 6.5 million on the slow pace of import licenses.
  • Vietnam is up 300,000 tons to 3.0 million based on trade to date and on expectations of higher wheat feeding in aquaculture.