As the international price of wheat firms up, global supply and demand balance is going to tighten in 2018-2019. That forecast comes from the Food Outlook, a biannual report published by the Food and Agricultural Organization of the United Nations.
The global wheat production forecast is set to drop by 4.3% from the record level of last year. Total production is now predicted to add up to 727.9 million tons. Australia, China, the Russian Federation, and the EU are the primary causes of the year-over-year contraction.
Those nations are also the primary reason for the overall lowering of the global production outlook. Production is expected to expand in both North and South America. Wheat utilization around the world will slightly increase in 2018-2019, with the minimal gain held in check by lower use rates in the Russian Federation and Ukraine. However, global wheat use for food production is expected to rise one percent higher. Because world production is expected to fall below usage level, global wheat stocks in 2019 will drop 4.5% lower than the record-high opening level.
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