February 13, 2012

World wheat demand forecast to drop one million tonnes

Global wheat consumption is expected to drop by one million tonnes due to reduced use of wheat in India as food, according to the latest USDA WASDE report.

India's wheat consumption is almost reduced by 1.6 million tonnes, partly offset by the small increase in food use for Australia, Chile, Ethiopia, and Kazakhstan.

The global wheat production is for 2011-12 is estimated to be higher by 2.1 million tonnes due to the larger beginning stocks in Kazakhstan and increased production for India, Kazakhstan and Morocco.

According to various Indian government agencies, India's wheat production for 2011-12 is estimated to cross 84 million tonnes. Global ending stocks for 2011-12 are raised to 3.1 million tonnes to a record 213.1 million tonnes.

In Inter Continental Exchange (ICE) wheat for March delivery traded at 641 4/8 cents per lb and in India's National Commodity and Derivative Exchange (NCDEX) the commodity traded at INR1241 (US$25.12)/tonne on February 9.