World Wheat Output Forecast to Soar Globally

Although there were few changes to the U.S. supply and demand forecast from last week's USDA report, world wheat production is forecast at record high levels as World Outlook Board Chair Gerry Bange explains.

Bange: "We are estimating world wheat production at 708.9 million tons and that of course would be record high. Much of the increase this month reflected a 2 million ton increase in Canada -- 31. 5 million tons and a 1.5 million ton increase in European Union to 142.9."

Although world wheat production is higher it is offset by stocks on hand.

Bange: "In 2013-14 we're going to produce a world crop that is 8.2 percent higher than in 2012-13 that is an increase of about 54 million tons. We are bringing into the 2013-14 year however about 25 million tons less, so some of the increase in production is offset in the decrease in the beginning stocks level in 2013-14."

Bange shares more details about the strong Canadian harvest results which over came some obstacles.

Bange: "They started out very slowly. They had some issues at the beginning of the year and got their crop in late. And subsequent to that during the planting season and during the growing seasons, they had excellent conditions accompanied by a fairly cool July. As we got into harvest period that they have had a fairly good dry down. Bottom line here is that situation started out very poorly for Canada and ended very well with record yields."