USDA's wheat outlook report shows that the world wheat supply and demand balance is getting tighter in 1998-99 but not close to 1995-96 or 1996-97 when the global stocks-to-use ratio declined below 20%.  The department now projects a ratio of 22.7% for the season, an increase from the 21.3% forecast last month.

Changes to production, consumption and trade in several countries combined to increase expected global 1998-99 ending stocks by 5%.  The largest change was for India where large government procurement and slower than expected use of government stocks through the public distribution system increased the stocks forecast.

Increases in ending stocks in several countries overwhelmed a 1 million ton decline in Australia where aggressive selling by the Australian Wheat Board has increased export prospects, decreasing stocks.

U.S. winter wheat acres seeded for this year total 43.4 million, 7% fewer than 1998.  About 30.9 million acres are hard red winter, 9 million are soft red winter and 3.5 million are white winter.

Durum wheat acreage projections increased 12% from last year to 4.27 million for the highest total since 1982.  Other spring wheat, excluding durum, total acreage declined from 2% from 1998 to 15.4 million acres, the smallest acreage since 1988.  Other spring wheat acreage also will increase in the Pacific Northwest where white spring wheat is produced.