GLOBAL wheat production will top 700 million tonnes for the first time.
In the Agricultural Supply and Demand Estimates report released overnight, the US Department of Agriculture has tipped a record wheat crop of 705.4 million tonnes, boosted by extra production in Kazakhstan, the Ukraine and the European Union.
The WASDE forecast is a 7.6 million tonne increase from the July estimate.
The USDA increased its estimate of Kazakhstan’s crop by 2.5 million tonnes to 17 million tonnes and the Ukrainian crop by two million tonnes to 21.5 million tonnes as a result of good spring and summer rains.
The EU wheat crop was increased by 2.8 million tonnes to 141.4 million tonnes, with most of the rise as a result of good crops in Spain, France and Germany and to a lesser degree in Romania, Bulgaria and Hungary.
Australia can expect more competition in the wheat market, with most of the extra production from Kazakhstan, the Ukraine and the European Union expected to be exported.
China is forecast to take one million tonnes of the extra global production, boosting its imports to 9.5 million tonnes.
Australian wheat production was left unchanged at 25.5 million tonnes and exports remained at 19 million tonnes.
The USDA surprised analysts around the world by reducing its estimate of the US corn crop by 4.8 million tonnes to 349.6 million tonnes.
The US crop will still be a record, easily surpassing the 332.6 million tonne crop of 2009-10.
Corn ending stocks were reduced by 3.1 million tonnes as a result to 46.7 million tonnes.
Corn futures prices on the Chicago Board of Trade rose by 1.3 per cent to 472 US cents a bushel, or $A204 a tonne.
CBOT futures prices were at their lowest levels in three years but still considerably higher than the 350-400 US cents a bushel it had traditionally traded at in the preceding three years.
CBA Agri Commodities analyst Mathews said US corn stocks were 2.6 times higher than this time last year and at their highest level since 2005-06.
CBOT wheat prices gained 0.2 per cent to 635 US cents a bushel, or $A256 a tonne, after the WASDE report was released, despite a bigger crop
Mr Mathews said CBOT wheat futures were supported by strong gains in the corn and soyabean markets.
He said the soyabean market rose 3.1 per cent as a result of a “surprisingly bullish” WASDE report on the oilseed.
The USDC reduced global soyabean production by 4.2 million tonnes to 281.7 million tonnes.