World wheat use reduced

South Korea has been importing and using 0.5 million tonnes (mt) less wheat
for animal feed than expected. It replaced wheat with manioc and corn
distiller’s dried grains.

The increase in world local marketing year
exports is less than the increase in imports, reducing world wheat
use.

Global ending stocks for 2008/09 are projected up slightly this
month to 148.4 mt. The largest change in projected stocks is for Russia, down
1.0 mt to 7.1 mt.

Russia has been exporting at a fast pace in the first
half of 2008/09, and even with government intervention buying wheat, export
prospects were boosted and stocks prospects reduced this month.

Increased
export prospects for Mexico’s durum wheat has trimmed projected ending stocks by
0.2 mt this month. These declines are more than offset by increased stocks
prospects for the EU-27, Saudi Arabia, Turkey, and the United States.

For
the EU-27, increased imports more than offset a small reduction in production,
boosting stocks.

Saudi Arabia has begun to import significant amounts of
wheat, boosting stocks 0.4 mt, in anticipation that reduced production subsidies
will trim future production.

For Turkey, increased production and imports
more than offset increased exports, boosting prospects for ending stocks 0.3
million tons.

Full monthly report here from USDA