The U.S. Department of Agriculture's Foreign Agricultural Service has released its March 2025 Grain: World Markets and Trade report, revealing significant developments in global wheat and corn markets. The report indicates record-breaking wheat production worldwide and a notable increase in corn imports for Colombia.
Global wheat production has reached an all-time high, with Australia contributing the largest increase. This surge in production has led to lower prices across most wheat classes. Hard Red Spring wheat fell $17 per ton to $260, while Hard Red Winter dropped $16 per ton to $252. Soft Red Winter experienced a $13 per ton decrease to $237.
The abundance of wheat has impacted global markets, with major exporter quotes converging. Australian wheat prices decreased by $6 per ton due to increased exportable supplies. Canadian quotes dropped $16 per ton, aligning with Australian and U.S. declines. Russian quotes, however, moved $4 per ton higher as domestic supplies tighten.
In the corn market, Colombia is forecasted to import a record 6.8 million tons in the 2024/25 marketing year. This surge is attributed to lower domestic production, rising demand from the feed industry, and improved market access for U.S. corn under the U.S.-Colombia Trade Promotion Agreement.
The elimination of the tariff-rate quota for U.S. corn entering Colombia has boosted its competitiveness against Mercosur suppliers. Recent data suggests that U.S. market share in Colombia will grow in 2024/25, with total commitments for the year already reaching 5.0 million tons as of February 27, up from 3.6 million tons the previous year.
The USDA report also notes changes in global coarse grain production. Increases in India, Russia, and Ukraine have offset reductions in Mexico and South Africa. Global corn trade is forecast down, with reduced exports from Brazil and South Africa more than counterbalancing an increase to Argentina.
These market shifts are likely to have significant implications for the feed industry, particularly in regions experiencing increased corn imports like Colombia. Industry stakeholders should closely monitor these trends as they may impact feed costs and availability in the coming months.
