Market Perspective

On Tuesday the USDA released its December Crop Production Report. On the wheat side, the only overall adjustment made to the U.S. table from last month was an increase in wheat exports of 10 million bu. That raised U.S. wheat carryovers to 575 million bu for next year. The market had been looking for a drop in U.S. wheat carryovers due to an increase in wheat exports, but it did not get it in this report.

As for the world supply/demand situation, the report increased world wheat production by 5 million metric tons due to a 4 million metric ton increase for Canada and a 1 million metric ton inc...