PRODUCTION HIGHLIGHTS FOR 1998/99
July 1998

WHEAT




Country

--------

Current Estimate MMT

1998/99

Monthly Change MMT

--------

Monthly Change
(%)


Change from 1997/98 (%)





Comments

World 601 .4 +2.7 +0 -1 Production is forecast higher as an increase in the United States more than offset a decrease in the foreign category.
United States 68.6 +3.5 +5 -0 Production is forecast higher due to an increase in area and record yield.
Total Foreign 532.7 -0.8 -0 -2 Production is forecast lower as decreases in Russia and Argentina more than offset increases in Turkey and the EU-15.
Russia 35.0 -3.0 -8 -21 Production is forecast lower due to hot, dry weather in the Volga Valley and Urals which reduced potential yields.
Argentina 11.5 -0.5 -4 -22 Production is forecast lower as weak wheat prices reduce area.
Czech Rep. 4.0 -0.2 -5 -9 Production is forecast lower due to a reduction in area.
Turkey 18.0 +1.5 +9 +13 Production is forecast at a record due to an increase in yield as a result of favorable weather throughout the growing season.
EU-15 101.1 +1.0 +1 +7 Production is forecast at a record level. Harvested area and yield increases in Germany boosted output to an expected record.
Algeria 1.5 +0.4 +36 +58 Production is forecast higher due to increases in area and yield. Data for several previous years also are revised.

COARSE GRAINS




Country

---------

Current Estimate MMT

1998/99

Monthly Change MMT

---------

Monthly Change (%)


Change from 1997/98 (%)





Comments

World 898.6 -8.2 -1 +1 Production is forecast lower due to decreases in the United States and the foreign category.
United States 268.9 -0.9 -0 +1 Production is forecast lower due to decreases in corn, barley, and sorghum. Most of the reductions are due to lower harvested area.
Total Foreign 629.6 -7.3 -1 +1 Production is forecast lower mainly due to decrease in Canada and Russia; however, output in Turkey and the EU-15 increased.
Russia 29.5 -7.0 -19 -28 Production is forecast lower as hot, dry weather in the Volga Valley and Urals reduces barley, oats, and rye yields.
Canada 25.6 -1.3 -5 +1 Production is forecast lower due to a Statistics Canada report lowering barley, oats, and rye area.
Mexico 25.3 -0.5 -2 +3 Production is forecast lower as early-season below-normal rainfall negatively affected the late-planted corn crop.
EU-15 105.2 +0.8 +1 -3 Production is forecast higher due to increases in barley and rye yields in Germany.
Turkey 10.7 +0.6 +6 +7 Production is forecast higher due to favorable weather that increased barley yield potential.
Bulgaria 1.3 +0.2 +18 -13 Production is forecast higher due to an increase in harvested area.

RICE (MILLED BASIS)




Country

--------

Current Estimate MMT

1998/99

Monthly Change MMT

--------

Monthly Change (%)


Change
from 1997/98
(%)





Comments

World 387 .9 +0.9 +0 +1 Production is forecast at a record based on increases in the United States and the foreign category.
United States 6.2 +0.2 +3 +6 Production is forecast higher due to increases in area and yield.
Total Foreign 381.7 +0 .7 +0 +1 Production is estimated at a record level primarily due to increases in Brazil, Indonesia, Philippines, Burma, and Bangladesh.

 

RICE (MILLED BASIS), continued




Country

--------

Current Estimate MMT

1998/99

Monthly Change MMT

--------

Monthly Change (%)


Change
from 1997/98
(%)





Comments

Brazil 6.7 NA NA +15 Production is forecast higher due to a recovery in area and yield from last season's reduced crop.
Indonesia 33.0 NA NA +7 Production is forecast above the El Niņo reduced 1997/98 crop. Both harvested area and yield are projected to increase.
Philippines 7.2 NA NA +7 Production is forecast higher based on increased harvested area.
Burma 9.3 NA NA +4 Production is forecast higher due to a larger harvested area and yield.
Bangladesh 19.0 NA NA +4 Production is forecast higher based on an increase in harvested area and yield.
Vietnam 18.0 NA NA +1 Production is forecast to increase as a result of a slightly higher harvested area.
Pakistan 4.4 NA NA +1 Production is forecast slightly higher due to an increase in yield.
China 140.0 NA NA NC Production is forecast unchanged from last season as an increase in yield offsets a decrease in area.
India 83.5 NA NA NC Production is forecast unchanged from last year as an increase in area is offset by a decrease in yield.
Japan 8.3 NA NA -9 Production is forecast lower due to a decrease in harvested area as a result of its Government area diversion scheme.
Australia 0.9 NA NA -5 Production is forecast lower as yield is reduced to a more-normal level.
South Korea 5.2 NA NA -5 Production is forecast lower as yield is below last season's record level.
EU-15 1.7 NA NA -2 Production is forecast to decrease as yield is below last year's record level.
Thailand 14.6 NA NA -1 Production is forecast lower due to a marginal reduction in harvested area.

OILSEEDS




Country

---------

Current Estimate MMT

1998/99

Monthly Change MMT

--------

Monthly Change (%)


Change from 1997/98
(%)





Comments

World 288.3 +0.2 +0 +1 Production is estimated higher for 1998/99 due to an increase in the United States which more than offset a decrease in the foreign category.
United States 86.6 +0.8 +1 +3 Production is estimated higher for 1998/99 because of increases in soybeans, sunflowerseed, and rapeseed.
Total Foreign 201.8 -0.6 -0 +0 Production for 1998/99 is forecast to be virtually unchanged from last year as declines in output for China, Brazil, and Argentina offset increases in Europe, Canada, and India.
Eastern Europe 5.4 NA NA +27 Production is forecast to increase sharply for 1998/99 after 1997/98's rapeseed crop was reduced by winter kill in Poland and excessive rains at harvest reduced the sunflowerseed crops in Hungary and Romania.
Russia 3.7 NA NA +16 Production is forecast up due to increased sunflower plantings in areas of traditionally high sunflowerseed production.
Canada 9.6 NA NA +8 Production is forecast higher resulting from an increase in rapeseed area as prices have been favorable relative to wheat prices and a decline in soybean output.
Paraguay 3.1 NA NA +8 Production is forecast higher for 1998/99. Last year yields were reduced by excessive rains at harvest, limiting cottonseed and soybean output.
EU-15 16.0 NA NA +7 Production is forecast higher largely due to an expansion in soybean area in Italy as well as French and German rapeseed area.
India 26.7 NA NA +5 Production is forecast to increase for 1998/99. Adverse weather reduced rapeseed and cottonseed output in 1997/98.
Ukraine 2.5 NA NA +4 Production is forecast higher based on the expectation of a return to more normal weather.
Argentina 22.3 NA NA -7 Production is forecast lower due to a return to a more-normal weather pattern following last year's El Nino event which boosted the 1997/98 soybean yield to a record.
China 41.0 NA NA -6 Production is forecast lower due to a severe springtime freeze which damaged rapeseed during flowering.

 

OILSEEDS, continued




Country

---------

Current Estimate MMT

1998/99

Monthly Change MMT

--------

Monthly Change (%)


Change from 1997/98
(%)





Comments

Brazil 30.4 NA NA -4 Production is forecast lower as a more-normal soybean yield is expected in 1998/99. Excellent weather associated with the recent El Nino event boosted the 1997/98 soybean yield to a record.
Uzbekistan 2.2 NA NA -4 Production is forecast lower based on an expected decline in cottonseed yield.

PALM OIL




Country

---------

Current Estimate MMT

1998/99

Monthly Change MMT

---------

Monthly Change (%)


Change from 1997/98 (%)





Comments

World 17 .8 NA NA +2 Production is forecast at a record. Malaysian output is forecast at 8.8 million tons, up 0.2 million from 1997/98. Indonesian output is forecast at a record 5.7 million tons, up 0.2 million.

COTTON




Country

---------

Current Estimate
MBALES

1998/99

Monthly
Change
MBALES

---------

Monthly Change (%)


Change from 1997/98 (%)





Comments

World Total 86.3 -0.2 -0 -5 Production for 1998/99 is forecast lower due to a decrease in the United States which more than offset an increase in the foreign category.
United States 15.0 -0.7 -4 -20 Production is forecast lower due to hot, dry conditions in Texas and the Southeast.
Total Foreign 71.3 +0.5 +1 -1 Production is forecast down from last season due to reduced yield prospects in a few primary cotton producing countries which more than offset a slight increase in area.
Egypt 1.2 NA NA -23 Production is forecast lower as area is reduced 20 percent from last year as farmers switch to more profitable crops such as wheat, corn, or rice.

COTTON, continued




Country

---------

Current Estimate
MBALES

1998/99

Monthly
Change
MBALES

---------

Monthly Change (%)


Change from 1997/98 (%)





Comments

Australia 2.6 NA NA -15 Production is forecast lower due a decline in area as water licences are cut in most cotton growing regions in New South Wales.
China 19.5 NA NA -8 Production is forecast lower due to a reduction in yield from last year's record level. Area is up slightly due to lower prices for alternative crops.
Uzbekistan 5.0 NA NA -6 Production is forecast down due to heavy rains at the end of April and first half of May which delayed vegetative growth. In addition, plants have been weakened by an unusually cool June, which often deceases potential yield.
Turkey 3.4 NA NA -3 Production is forecast slightly lower as cool, wet weather during early plant development has reduced yield potential.
Argentina 1.7 NA NA +31 Production is forecast higher than last season due to a projected increase in yield as weather returns to a more-normal pattern.
Turkmenistan 1.0 NA NA +18 Production is forecast up due to increases in area and yield. The Government has taken steps to provide some production credit--the lack of which was a major problem last year.
Pakistan 7.5 NA NA +6 Production is forecast higher as yield potential improves due to the continued use of disease resistant varieties and a recovery in yield from reduced levels caused by late 1997/98 rains.
India 12.5 NA NA +5 Production is forecast up as higher cotton prices during 1997/98, vis-a-vis those of competing crops, resulted in an increase in cotton area. Yields also are forecast to increase from last year's insect and weather reduced crop.
Brazil 1.8 NA NA +3 Production is forecast higher due to the increased use of improved seeds, better crop management, and the increasing contribution to total production by Center-West Region, where yields are improving.