Market Outlook

 

Wheat Outlook: March 2021

Summary

 

Global Wheat Consumption Lifted with China’s Feed and Residual Surging to Record High

Largely on a 5.2-million ton increase in 2020/21 global feed and residual use, total wheat consumption is elevated to nearly 776 million tons this month. China’s intensive use of wheat for feeding has fueled much of this month’s surge and is now estimated at a record 35 million tons. Following the 5-million ton increase in China’s feed and residual forecast, the Nation accounts for approximately 19 percent of total global wheat consumption up from the 5-year average of 16.5 percent. Active selling of old-crop wheat at government auctions combine with a continued erosion of regional wheat to corn price ratios—now pegged at 0.9 versus 1.3 a year ago—to support the escalation of China’s wheat feeding.

 

See the Wheat Outlook.