Thursday, May 26, 2011
Traditional Exporter Stocks Decline Again
A key price factor for the world wheat market is the level of stocks held by traditional exporters: Australia, Canada, the EU, Argentina and the United States. Ending stocks are expected to tighten somewhat this year.
The biggest drop is in the United States, but stocks are still abundant. So far this year, the US has exported 33.4 MMT of wheat (46.6 percent higher than this time last
year), 32.1 MMT of corn (2.5 percent less), 37.5 MMT of soybeans (3.4 percent more), 2.8 MMT of sorghum (15.9 percent less) and 119.2 TMT of barley (30.0 percent more).
Slight increases are expected in Australia and the EU, partly offsetting the decline. Although stock levels are expected to recover in Russia and Ukraine, restrictive government export policies will continue to impact prices.