Ample supplies fuel export competition
The November United States Department of Agriculture Report saw United States wheat production estimates lowered because of significant unharvested acres of spring wheat in North Dakota and Montana. US wheat production was lowered by 1.13 million tonnes as a result.
At the same time, US consumption was also lowered because of lower seed use as, once again, planted area in the US contracts, to a new low for the past 110 years. The net result is that US closing wheat stocks declined by 810,000 tonnes.
While this might have been supportive of US wheat futures at the domestic level, it was overtaken by changes to the global supply and demand balance sheet.
Here we see the USDA adding to global production estimates by more than any lift in consumption, leading to larger global ending stocks. B ...