Commodities Buzz: Strong Rise Expected In US Wheat Food Use

The US all-wheat food use for the 2017/18 marketing year is now estimated at 963 million bushels, up 14 million from 2016/17, according to US Bureau of Economic Analysis. The strong rise in wheat food use reverses a multiyear trend of both declining per capita and aggregate wheat food use. For 2017, per capita wheat food use is projected at 131.8 pounds, up slightly from 131.7 pounds per capita in 2016.

The data indicates further that real personal consumption expenditures, driven by rising incomes, have steadily increased and support growth in food service and accommodations expenditures. Wheat food use tends to increase as expenditures on food eaten away from home rise. Accordingly, the recent rise in wheat food use can, in part, be explained by increased demand for food services such as meals eaten at fast casual restaurants.