| 14:15 UK, 9th October 2009, by Agrimoney.com |
| US downgrades wheat exports to seven-year low |
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Washington has, for a fourth successive month, cut its forecasts for US wheat prices, noting that stronger competition from abroad will depress exports to their lowest for seven years.
The US Department of Agriculture slashed 1.4m tonnes from its estimate of America's wheat shipments for 2009-10. At 24.5m tonnes, exports would now be the lowest since 2002-03.
The downgrade reflected a greater share of world trade taken by rival exporters, notably Canada, which had been blessed with better-than-expected crops.
"Larger supplies in major export competitors reduce prospects for US wheat shipments," the USDA said in its monthly world crop supply and demand report.
The department cut to $4.55-5.15 a bushel, from $4.70-5.50, its forecast for the price that America's wheat farmers can expect to receive.
In Chicago, wheat closed down 6 cents to $4.68 a bushel.
'Extended growing season'
The better prospect for the global harvest, which the USDA pegged at 668.12 tonnes, within 15m tonnes of last year's record, reflected in the main improved hopes for crops in Canada and Russia, whose farm ministry earlier on Friday raised its grain output forecast.
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Key wheat data, 09-10 (change from previous estimate)
Global production: 668.12m tonnes (+4.40m tonnes)
Global exports: 124.80m tonnes (+1.84m tonnes)
US production: 60.42m tonnes (+0.99m tonnes)
US exports: 24.49m tonnes (-1.37m tonnes)
Source: USDA | "Production is raised 2.0m tonnes for Canada as favourably dry, warm September weather extended the Prairie growing season by as much as three weeks, boosting yields for this year's delayed crop," the USDA said.
"Russia production is increased 1.0m tonnes based on higher reported spring wheat yields, particularly in Siberia."
Forecasts for Australian, European and Kazakh crops were also edged higher.
The increases more than offset waning hopes for the harvest in Brazil, where "continued heavy, late-season rains reduce prospects for yields and quality".
The USDA also raised its forecast for the global barley harvest by 4.4m tonnes, citing better crops in Australia, Europe and North America.
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Russia's farm minister raises crop forecast again
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