The lastest weekly market report from Sask Wheat says the 2020 wheat production estimate was raised to an all time high, largely due to improved production in Australia, Canada and Iraq.
Use of wheat has also been scaled down, mainly due to less feed wheat use in the European Union due to high prices.
Wheat trade this crop year is expected to remain near the previous year’s level as higher imports by China, Iran, Morocco and Pakistan outweigh lower imports by Iraq and Turkey.
The Sask Wheat summary says harvest is wrapping up in Australia with exceptional conditions in 3 states, and poor in Queensland.
Conditions are generally favorable for winter wheat in the European union with some concerns about excess rainfall and winterkill.
In Russia and Turkey, conditions are mixed for winter wheat due to dry conditions last fall.
There is some concern about U.S. winter wheat due to dryness.
Going forward, the outlook says it is a difficult market to call.
The report says with punitive taxes, the Russian government has short-sightedly removed all of the inherent advantages and production incentives that gave Russian farmers their lead in world agriculture, and it seems to be heading down the same road as Argentina.
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