Global wheat production, demand expected to rise
World wheat production and demand is expected to rise. That is according to U.S. Wheat Associates and their winter 2021 outlook.
USDA expects global wheat production to top 773 million metric tons and world stocks of wheat should grow larger.
According to U.S. Wheat’s Steve Mercer, “If you look at world wheat production and use, we have produced more wheat in the world than we have used in seven of the last ten years. That’s going to lead to a pretty big supply. On the other hand, use, like food and feed, around the world sets new records every year as well. So, farmers around the world are doing a great job to increase production and the weather has been pretty favorable. Generally speaking, that’s the situation we’re in.”
He says that U.S. wheat stocks are getting a bit smaller, but as prices go back up, we will see an increase in planted area, and if the weather cooperates, the supply will be bigger.