Reports CTRM for Agricultural and Soft Commodities

CTRM for Ags & Softs Wheat Wheat is one of the first cereal grains known to have been domesticated. Its wild varieties can be traced by to the Middle East and specifically the Nile Delta and Mesopotamia more than 11,000 years ago. Modern wheat varieties have been hybridized from various wild varieties, with the modern crops generally split into two large groups – soft wheats and hard or durum wheat. Overview There are several domesticated wheat varieties, including hybrids, but most often the distinction is made between soft and hard (durum) wheat. Soft wheat is the most cultivated and is a primary human food source, though lower quality supplies are commonly used to feed livestock and in the production of ethanol.Hard wheat, though less commonly grown, is the primary ingredient in semolina and pastas. Modern cultivation in most countries results in two crops being planted per year, a winter crop and spring crop. The five largest growers, including European Union, China, India, Russia and the US, account for about 68% of the annual production of all varieties of wheat. However, Australia, Canada, the EU, Russia and the US are the largest supplier of wheat to the global markets, with China (and occasionally India) being net importers. Wheat Production Globally, wheat is produced in a large number of countries and is an important food crop in most global diets.Though commonly cultivated, most countries will consume all or of most of their wheat crops, limiting the number of countries that will export excess production.In terms of overall production, the following five countries/regions are the largest, accounting for about 68% of the global wheat crop in 2014/15: Wheat Production 2014/15 – 1000 Metric Tons 1. EU-27 156,448 2. China 126,000 3. India 98,850 4. Russia 59,080 5. United States 55,129 World Wheat, Flour, and Products Trade - Source USDA July/June Year, Thousand Metric Tons 2011/12 2012/13 2013/14 2014/15 TY Exports Argentina Australia Brazil Canada European Union Kazakhstan Mexico Russia Turkey Ukraine Others Subtotal United States World Total 11,951 23,031 1,860 17,603 16,728 11,069 790 21,627 3,678 5,436 11,850 125,623 28,142 153,765 7,450 21,269 1,753 18,584 22,786 6,801 729 11,289 3,583 7,190 18,040 119,474 27,734 147,208 1,675 18,339 81 22,157 32,033 8,000 1,322 18,568 4,293 9,755 14,642 130,865 31,518 162,383 4,200 16,575 1,688 24,832 35,401 5,507 1,104 22,800 4,136 11,269 11,081 138,593 22,752 161,345 TY Imports Afghanistan Algeria Bangladesh Brazil China Egypt European Union Indonesia Iran Iraq Japan Korea, South Mexico Morocco Nigeria Peru Philippines Saudi Arabia Sudan Thailand Tunisia Turkey Uzbekistan Vietnam Yemen Others Subtotal Unaccounted United States World Total 2,200 6,500 2,039 7,053 2,933 11,650 7,362 6,457 2,400 3,784 6,354 5,188 5,020 3,671 3,903 1,585 4,075 2,904 2,360 2,646 1,473 4,413 2,698 2,711 2,685 44,807 148,871 1,857 3,037 153,765 1,600 6,484 2,725 7,547 2,960 8,300 5,276 7,146 5,600 3,948 6,598 5,439 3,823 3,825 4,138 1,683 3,645 1,921 1,793 1,845 1,523 3,312 1,863 1,671 3,149 43,469 141,283 2,449 3,476 147,208 2,050 7,484 3,354 7,061 6,773 10,170 3,974 7,392 6,600 3,246 6,123 4,288 4,636 3,892 4,580 2,078 3,482 3,429 2,664 1,693 1,634 4,154 2,224 2,158 3,425 46,861 155,425 2,173 4,785 162,383 2,000 7,257 3,804 5,869 1,926 11,063 5,973 7,478 5,006 2,253 5,878 3,942 4,446 4,073 4,244 1,907 5,099 3,487 2,632 3,489 1,461 5,960 2,230 2,296 3,245 47,326 154,344 3,014 3,987 161,345 Wheat Trading Wheat futures are traded on the Chicago Board of Trade (CBOT), Intercontinental Exchange (ICE) and on the Euronext exchange. The US is the fifth largest producer of wheat, and has historically been the world’s leading exporter, though with lower exports in 2014/15, the US has fallen behind several other countries/regions, including Canada, Russia and the European Union. © Commodity Technology Advisory LLC, 2016, All Right Reserved 46

Reports CTRM for Agricultural and Soft Commodities | Page 47