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U.S. wheat supplies for 2017/18 are projected down 9 percent from 2016/17 on lower production, which is partially offset by higher beginning stocks. All wheat production for 2017/18 is projected at 1,820 million bushels, down nearly 500 million bushels from the prior year. The year-to-year decline is due to a sharp reduction in planted area and projected lower yields. The all wheat yield is projected at 47.2 bushels per acre, down 10 percent from last year’s record. The first survey-based forecast for 2017/18 winter wheat production is down sharply with the lowest harvested area in more than a century and lower yields. Winter wheat benefited from diminishing drought conditions in the Plains and Midwest. However, a late April snow storm affected large portions of the Hard-Red Winter wheat belt, especially western Kansas. Combined spring wheat and Durum production for 2017/18 is projected to decline 10 percent on lower area and a return to trend yields. Total use for 2017/18 is projected down 2 percent on lower exports and feed and residual use. Exports are projected at 1.0 billion bushels, down 35 million from the previous year’s revised level but above the five-year average. The EU is expected to regain export market share following last year’s small crop and quality problems. U.S. feed and residual use is projected down 20 million bushels on lower supplies. U.S. ending stocks are projected to decline 245 million bushels to 914 million, the lowest in three years. The season-average farm price is projected at $3.85 to $4.65 per bushel. The mid-point of this range is up $0.35 from the previous year’s low level. Global wheat supplies are projected to decline fractionally as higher beginning stocks are more than offset by a production decline following last year’s record. Total wheat production is projected at 737.8 million tons, the second highest total on record. Global wheat consumption is projected down slightly from last year’s record with reduced feed and residual usage partially offset by increased food use. Global imports are expected to be a record for the fifth consecutive year. Global ending stocks are projected at a record 258.3 million tons, up 2.9 million from 2016/17.

Wheat futures on the National Commodity and Derivatives Exchange ended largely unchanged as higher supplies in physical markets were offset by demand from flour millers ahead of Ramzan. The most-active June contract on the NCDEX ended up 0.06% from the previous close. The overall sentiment was bearish as the government raised this year wheat production estimate to a record prominent level. In benchmark Indore market, mill quality wheat traded steady. In the Delhi market wheat prices were a tad up 5 rupees from previous close.

New Delhi Barring rise in wheat prices, other commodities moved in a tight range in the absence of worthwhile activities, settling at their previous levels. Arrivals and offtake too remained at a low ebb and volume of business restricted. Wheat dara also showed some strength on increased offtake by flour mills. Rise in wheat dara prices was mostly supported by increased offtake by rolling flour mills to meet increased demand. In the national capital, wheat dara (for mills) on the back of increased offtake by flour mills wheat dara prices rose by another Rs 20 per quintal.

Last week, the Ukrainian grain market was sluggish. Domestic prices for all major cereals kept falling. CPT market was also quiet amid the decreased demand from importers for old-crop grain. A significant reduction of wheat exports from Ukraine is expected in May-June. Domestic grain CPT-port prices dropped on average by UAH 50-100/MT. New crop as well as strengthening of the national currency still pressured the domestic prices.