The latest WASDE supply and demand report from the US Department of Agriculture paints a relatively bright picture, though major crops trended sideways.

In its latest report, released on Wednesday, USDA revised 2012/13 domestic wheat stocks up by over 400,000 tonnes. Analysts said increased seed use for higher plantings and been offset effectively by reduced feed demand.  

USDA suggested global wheat supplies for the year are around 2.6 million tonnes, with EU, Morocco and Mexico benefitting most from higher stocks on lower than anticipated demand. Globally, production remained relatively constant, with a slight increase from morocco and slight reduction from the EU on lower UK output.

The report also predicted trade increases for wheat, with EU and Australian exports each being revised almost 1 million tonnes upwards. It predicted that world ending stocks for 2012/13 would be 3.6 million tonnes higher at 182 million tonnes.

Oilseed outlooks also improved, largely on increased soybean crush, which was up by 544,000 tonnes to 44 million tonnes. Exports were also estimated up 100,000 tonnes. However, estimated ending stocks were unchanged from February.

Global oilseed production was forecast to be 425 million tonnes, a slight increase, though trade was forecast down. USDA estimated that increased US exports will not make up for reductions in trade from Brazil and Argentina, where last year's drought has had a marked effect on availability.