The latest outlook from SaskWheat says China’s intensive use of wheat for livestock feed fueled this month’s surge in demand, and is now estimated at a record 35 million tons.

Following the 5 million ton increase in China’s feed forecast, China accounts for 19 percent of total world wheat consumption, up from the 5 year average of 16.5 percent.

However, talk of falling demand in China due to renewed Asian swine flu and negative feed margins have kept a lid on feed grain prices.

Improved soil moisture in the U.S. Plains was a factor in the markets, along with falling cash markets in the European Union and Black Sea due to lack of demand.

Canadian wheat exports for week 32 were good at 351 thousand tons.

The season total is 12.1 million tons, a full 2.7 million tons or 29 percent higher than last year to date.