MarketsFarm — Global crop production in the latest monthly supply and demand report from the U.S. Department of Agriculture (USDA) is expected to increase for wheat, corn and soybeans.

USDA released its world agriculture supply and demand estimates (WASDE) on Tuesday.

The expectation is that global wheat production will be bumped up by 0.56 per cent to 768.49 million tonnes in the 2020-21 marketing year. The carryover is projected to be 310.12 million tonnes, for a 5.08 per cent increase over the previous year.

USDA said wheat production is expected to increase in Argentina, Canada and Russia — and especially in Australia, where wheat production is forecast to jump 57.9 per cent to 24 million tonnes as drought conditions have been alleviated.

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Countering those gains will be lower production in the European Union and Ukraine. However, Ukraine is still expected to reap its second largest wheat crop on record in 2020-21.

USDA forecast world corn production to increase by 6.47 per cent in 2020-21 to almost 1.19 billion tonnes, which would be a record high. The increase is based on greater production in North America, Brazil and Ukraine. The carryover is expected to rise by 7.91 per cent to 339.62 million tonnes.

Global soybean production is forecast to rise by 7.93 per cent to 362.76 million tonnes in 2020-21, according to USDA. The department forecast another round of huge crops for Argentina at 53.5 million tonnes and Brazil at a record 131 million, as well as production rebounding in the U.S. The carryover is to slip 1.87 per cent to 98.39 million tonnes.

— Glen Hallick reports for MarketsFarm from Winnipeg.