USDA raises estimates of wheat production in Russia and Ukraine

The USDA raised its estimates of wheat production by Russia and Ukraine, the main exporters from the Black Sea region, by 2 million tons in 2019-20, and exports from the two countries by 1.5 million tons due to favorable weather conditions.

Wheat production in Russia for 2019-20 is currently pegged to 78 million tons, which is almost 9% more than in 2018-1919, while production in Ukraine now stands at 30 million tons, which is almost 20 percent more than last year, according to a USDA report released this week.

Russian exports are currently projected at 37 million tonnes, while Ukraine's exports are projected at a record 19.5 million tonnes in 2019-20.

Crops in the region experienced favorable weather conditions during the winter. Analysts say that in Russia's main winter wheat regions - the South and North Caucasus regions - adequate snow and suitable temperatures since early December have reduced the risk of frost damage and have shown good moisture reserves for crops.

Meanwhile, initial U.S. stocks for 2019-20 are down 680,400 tons amid rising exports in 2018-19, the USDA said in a statement. The country's total wheat production for 2019-20 is currently projected at 51.8 million tons, 157,853 million tons more than in May.

US Export Estimates 2019-20 Unchanged at 24.5 million tonnes, while the feed and residual use forecast was raised 1.36 million tonnes to 3.81 million tonnes on the back of lower projected corn supplies.

The EU wheat export forecast for 2019-20 has been cut 500,000 tonnes from May estimates to 26.50 million tonnes amid increased competition from Black Sea countries.

Estimates of global wheat production in 2019-20 were revised to 780.83 million tons from 777.49 million tons projected in May.

Projected imports for Southeast Asia - among the main importers of wheat - were increased to 28.30 million tons from 27.90 million tons estimated in May.