Spring wheat prices will not be supported by the government, reducing the incentive to plant. Spring wheat in China is generally of low quality, and the government has stated that it will no longer procure the low quality wheat. Global Stocks Projection Up, Consumption Prospects Slip World wheat consumption is forecast lower this month, but foreign consumption is nearly unchanged. Meanwhile, increased production in Russia and Uzbekistan is contributing to increased stocks. World wheat stocks are projected to reach 114 million tons, up nearly 8 million from a month ago.
Foreign stocks account for about half of the increase.
Stocks in South Asia are up almost 3 million tons this month with the largest increase in India, although stocks are also up in Pakistan and Bangladesh. Stocks are projected up more than 1 million tons in the former Soviet Union, mostly Russia. Increased stocks are forecast this month for Canada, Argentina, and other countries with increased forecast production. Increased competition, especially from Canada, and slightly reduced world wheat trade, account for the reduction. World trade is forecast 0.5 million tons less than a month ago because reduced imports for Pakistan and Uzbekistan more than offset increased shipments expected to the Philippines.