Large global wheat inventories will do the grain no favour this year, with the Australian Bureau of Agricultural and Resource Economics (Abare) forecasting the world wheat price to fall 6%.

However, production will decline, reflecting lower plantings, particularly in the US. 

In the US, the total winter wheat planting for this season will be around 14% lower than in 2009-10.

China is the world's biggest producer of wheat. It will account for 17% of production in the next year, even though drought has hit the north of the country.

On average, India plants more area to wheat than any other country, but this year plantings will decline.

The Black Sea and South America are considered two major competitors. Even though Black Sea grain is not as good in quality, it is highly competitive on price, and is taking markets off traditional customers.