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FAO raised its 2020 world cereal production forecast by 9.3 million tonnes to about 2,790 million tonnes, a record that is 3.0% above 2019. Global wheat output was pegged at 761.5 million tonnes, with Australia's forecast revised up 5.5 million tonnes.
The stock-to-use ratio rose to a twenty-year high.
A record crop and a twenty-year-high stock-to-use ratio point to ample global grain supplies, which weighs on wheat and corn prices. Lower feed grain costs benefit livestock feed buyers.
riceplusmagazine.blogspot.comRiceplus MagazineJul 4, 2020After 1,006 past bearish report events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.6% to +1.8%), and +0.3% over 20.
After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
FAO's record world cereal and wheat output forecast and a stock-to-use ratio at a 20-year high point to ample supply, a bearish factor for wheat.
