Global grains brief: Outlook tight, particularly in the US
The USDA WASDE report has slightly lowered its wheat production estimates following reduced yields in Argentina and Russia.
The International Grains Council (IGC) however noted that overall production is set to be up by 2m tons, generated in particular from Australia, Canada, China and the EU.
The USDA said global wheat supplies will remain similar to December but US supplies will drop by 5% (1m tons), it said.
It continued that corn supplies across the globe will be down 1% and US supplies look increasingly tight with a decline of 7%. However, production is set to be up in Paraguay, Brazil and Argentina.
In an analyst note, Phil Carroll from UK-based Shore Capital Stockbrokers, said that both reports confirmed the tightness of the grains market, especially in the US and particularly the corn market.
