Wheat Outlook: January 2021
Tightened 2020/21 Balance Sheet Helps Lift U.S.
Following the release of key USDA, National Agricultural Statistics Service reports, second quarter disappearance is revealed to be greater than previously expected. On higher domestic use, the 2020/21 U.S. wheat balance sheet is tightened with ending stocks lowered 26 million bushels to 836 million, the lowest level since 2014/15 and well-below the 5-year average of 1,073 million (fig. 1). In addition to balance sheet tightening, rising corn and soybean season-average farm prices (SAFPs), up 20 cents and 60 cents respectively from their December forecasts, provide support for a 15-cent increase in the SAFP for wheat, now forecast at $4.85 per bushel.
See the Wheat Outlook.