USDA made the rare move of revising its wheat production estimate in November, acknowledging that a late harvest had resulted in better data coming in. Both the durum and hard red spring crop’s were reduced modestly. That brings this year’s crop to 1.999 billion bushels, down from 2.008 billion previously. USDA raised domestic food usage for hard red winter wheat, while lowering it for hard red spring. Exports were raised for hard red spring, while lowering them for hard red winter. The net result was that ending stocks fell by 9 million bushels, matching the drop in production.

Globally, USDA raised production in Kazakhstan by 73 million bushels and European production by 44 million. That was partially offset by reductions for Argentina, Algeria and Ethiopia. Global wheat usage was raised by 88 million bushels with increased wheat feeding expected in Kazakhstan, Brazil and Serbia. Ending stocks increased to 202.6 million metric tons, which is a 109 day supply. That’s more than abundant, but quality milling supplies remain snug.

Volume in Chicago was very strong yesterday, up 17% to 166,293. Volume was off 922 despite some fund buying.Bron: FF