KANSAS CITY — U.S. wheat futures prices fell sharply after the U.S. Department of Agriculture projected a 50-million-bu reduction in 2012-13 exports of U.S. wheat in its Dec. 11 World Agricultural Supply and Demand Estimates.
Exports of U.S. wheat for 2012-13 were projected at 1,050 million bus (28.58 million tonnes), down 50 million bus, or about 5%, from November and equal to 2011-12 estimated exports. At the same time, total world wheat exports for 2012-13 were projected at 132.77 million tonnes, up 80,000 tonnes from 132.69 million tonnes projected in November, with export increases forecast for Australia, the E.U.-27, North Africa, India and the F.S.U.-12 more than offsetting the U.S. decline.
“Projected exports are lowered 50 million bus reflecting the slow pace of sales and shipments to date and higher expected competition from foreign supplies,” the U.S.D.A. said. “U.S. exports are projected 45 million bus lower for hard red winter wheat, 10 million bus lower for soft red winter wheat and 5 million bus lower for hard red spring wheat. White wheat exports are raised 10 million bus.”
Nearby soft red winter wheat futures in Chicago closed about 27c a bu lower, hard red winter wheat futures in Kansas City ended about 21c lower and hard red spring wheat futures in Minneapolis settled about 14c lower. Nearby corn and soybean futures posted small losses of about 2@4c a bu in comparison to wheat.
U.S. wheat carryover on June 1, 2013, was projected at 754 million bus, up 50 million bus, or 7%, from 704 million bus as the November projection due to the like reduction in forecast 2012-13 wheat exports, and up 11 million bus, or 1%, from carryover of 743 million bus estimated in 2012.The projected U.S.D.A. 2013 wheat carryover was above the average expected by the trade that was near 718 million bus.