Biofuels Business - August, 2011 - (Page 10)

BIOFUELSMARKETREVIEW World wheat estimates million tonnes Wheat Production 07-08 08-09 09-10 10-11 est 649 122 661 186 -12 11-12 forecast 04-20 05-26 667 127 669 185 -1 672 126 672 186 609 110 606 129 +4 686 137 644 171 +42 679 128 652 198 +27 Unfavorable weather in several countries hurts production, but third-largest crop anticipated by Susan Reidy Trade Consumption Carryover stocks year/year change Source: International Grains Council Despite the impact of unfavorable weather conditions in several countries, particularly the E.U. and U.S., global wheat production is forecast at 666 million tonnes, which would make it the third largest on record. Upward revisions in India and China, where the winter wheat harvest is almost complete, helped offset cuts to E.U. and U.S. production, said the International Grains Council (IGC) in its June report. Although rains helped in parts of the E.U., many crops have been irreversibly damaged. The U.S. harvest is better than expected, but gains are offset by a reduced outlook for spring wheat. Stocks are expected to decline to 185 million tonnes due to rising demand, especially for feed, IGC said. High corn (maize) prices are encouraging the use of wheat for feed, which is expected to reach its highest level in two decades. WEATHER IMPACTS Rains stabilized the wheat crop in the western E.U., but IGC said the yield loss from the spring drought is now considered irreversible in parts of France, Germany and the U.K. Drier weather is needed in Spain and Greece where durum harvesting has started. Conditions in the eastern E.U. are still good, IGC said. Total E.U. production 10 U.S. wheat acreage, production Market year 2008/09 2009/10 2010/11 2011/12 Source: U.S. Department of Agriculture Planted acreage (million acres) 63.19 59.17 53.60 56.43 Harvested acreage (million acres) 55.70 49.89 47.64 47.17 Production (million bushels) 2,499.16 2,218.06 2,208.39 2,106.12 Yield (bushels per acre) 44.9 44.5 46.4 44.6 is estimated at 133.1 million tonnes, a reduction of 2.3 million tonnes since the beginning of June. In Kazakhstan, spring crops beneﬁted from rain, and production is expected to increase by 40% to 14 million tonnes. Rain also helped winter wheat in western Russia and improved soil moisture in the Urals and Siberia. Total production is estimated at 54 million tonnes. Rain, however, in Canada has delayed planting in the southern prairies, which could leave Manitoba with the largest unplanted area since 2005. The nation’s total harvested area is still forecast 12% higher than last year, IGC said. India is expected to see a record crop at 84 million tonnes, following ofﬁcial reports of better than expected yields. Planting is nearly ﬁnished in southeast and western Australia, although more rain is needed in the western region, IGC said. Total plantings are 6% higher than 2010, but lower yield expectations have total production at 25 million tonnes, about 1 million tonnes down from last year. In the U.S., all-wheat production is forecast at 2.106 billion bushels, down 5% from 2.208 billion bushels in 2010, the U.S. Department of Agriculture (USDA) said in its July Crop Production report. Wheat yield was forecast at 44.6 bushels per acre, down 1.8 bushels from 2010. Total harvested area is estimated at 47.2 million acres, down 1% from 47.6 million acres in 2010. August 2011 I BIOFUELS BUSINESS I www.BioFuelsBusiness.com http://www.BioFuelsBusiness.com

Table of Contents for the Digital Edition of Biofuels Business - August, 2011

Biofuels Business - August, 2011
CONTENTS
Growing in a recession
CALENDAR OF EVENTS
BIOFUELS BUSINESS NEWS
BIOFUELS MARKET REVIEW - Wheat
COUNTRY FOCUS - Focus on Costa Rica
FEATURE - Making the Deal
PRODUCTS & EQUIPMENT
SUPPLIER NEWS
AD INDEX

Biofuels Business - August, 2011