Summary of USDA Grain: World Markets and Trade Report – June

Wheat Market Overview – June

Global wheat production decreased this month primarily due to smaller crops in the EU, Ukraine, and Argentina, only partially offset by increases in Russia and Canada. Global consumption fell mainly due to lower feed use in the EU and Ukraine. Ending stocks were revised down, mainly in Ukraine and Pakistan. Global imports increased, mainly due to higher imports in Algeria, the EU, Japan, Pakistan, and Vietnam, while imports were lower in the US and the Philippines. Exports increased from Canada, Brazil, and the US, while Argentina and the EU saw declines. The average seasonal farm price in the US fell by 25 cents to $10.50 per bushel.

Rice Market Overview – June

2022/23 Crop Year

Global rice production is forecasted to be lower this month due to reduced production in the EU, driven by severe drought in Spain and Italy. Global consumption also decreased in Cambodia and Pakistan but remained at record levels. Global stocks are expected to decline, primarily due to reduced ending stocks in India for the 2021/22 crop year. Higher demand is anticipated for Pakistani rice. Global imports are expected to rise due to strong increases from the EU, Vietnam, and the US. Exports are also forecasted to increase, mainly from Cambodia and Pakistan.

2021/22 Crop Year

Global rice production is projected to be lower in July due to lower average yields in Sri Lanka and insufficient increases in production from the Philippines and Senegal to offset the declines. Global consumption is expected to increase, primarily due to rising demand in China, Benin, and the Philippines. Global stocks are forecasted to decrease, mainly in India, Sri Lanka, and Pakistan. Imports are expected to rise due to higher demand from China, Vietnam, and the Philippines. Exports from India, Pakistan, and Cambodia are expected to contribute significantly to global exports.

Corn Market Overview – June

2022/23 Crop Year

Global corn production is forecasted to decrease due to reduced plantings in Russia, the EU, and Kenya, with the decline larger than the increase in Paraguay. Global imports are relatively unchanged, with slight decreases forecasted in Costa Rica and some African countries, offset by increases in Nicaragua and the Philippines. Global exports are expected to rise, with the increase in Paraguay surpassing the decline in Russia. The average seasonal farm price in the US fell by 10 cents to $6.65 per bushel.

2021/22 Crop Year

Global corn production is forecasted to increase, primarily in Paraguay and the Philippines. Global exports are also expected to rise, driven by increases from Ukraine, Canada, the EU, Paraguay, and Zambia, offsetting declines from Argentina. Global imports are forecasted to increase slightly in Canada and Zimbabwe, with slight decreases in Africa, the Middle East, Central America, and Asia. The average seasonal farm price in the US remains unchanged at $5.95 per bushel.