WASDE - WheatMar 10, 2010 WHEAT: U.S. wheat ending stocks for 2009/10 are projected 20 million bushels higher as a reduction in expected food use pushes ending stocks to 1 billion bushels. Projected food use is lowered 20 million bushels based on the latest mill grind data from the U.S. Bureau of Census. High flour extraction rates for a second straight year are reducing the amount of grain needed to produce flour. At the same time, declining per capita consumption is reducing demand for flour and wheat. Exports of all wheat are unchanged, but hard red winter wheat exports are raised 10 million bushels with an offsetting reduction for white wheat. By-class adjustments reflect the pace of export sales and shipments to date. The projected marketing-year average farm price is raised 5 cents on both ends of the range to $4.80 to $5.00 per bushel as prices received by producers remain stronger than expected. Global wheat supplies for 2009/10 are projected 2.1 million tons higher mostly reflecting higher beginning stocks in Russia and higher production in Argentina. Beginning stocks are raised 2.1 million tons for Russia with historical revisions to estimated feed use. Partly offsetting are small reductions in 2009/10 beginning stocks for a number of other countries reflecting minor revisions to 2008/09 supplies and usage. Argentina production for 2009/10 is raised 0.6 million tons on higher reported area. Partly offsetting is a 0.3- million-ton reduction in Saudi Arabia production based on lower reported area and yields. A number of other smaller changes leave global production up 0.6 million tons this month. Global wheat imports and exports for 2009/10 are both raised this month. Imports are raised 0.4 million tons for Bangladesh and 0.3 million tons for South Korea with smaller increases for a number of other countries. Partly offsetting are small reductions in imports for Israel, Mexico, Tunisia, and Colombia. Exports are raised 0.5 million tons for Argentina and 0.2 million tons each for Brazil, India, and Serbia. Most of the trade adjustments this month reflect the pace of reported shipments to date. Global 2009/10 wheat consumption is raised 1.2 million tons with a 1.0-million-ton increase in China wheat feeding and a 0.8-million-ton increase in India food use. The reduction in U.S. food use is partly offsetting. Global ending stocks are projected 0.9 million tons higher with larger stocks in Russia and the United States only partly offset by reductions elsewhere. At 196.8 million tons, 2009/10 world stocks are up 73.5 million tons or 60 percent from the recent low in 2007/08. DISCLAIMER: This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Read Entire Disclaimer. | 
