April 16, 2007

Canada's 2007/08 wheat output seen at 24 million tonnes

Canada's wheat output is projected to fall to 24 million tonnes in the crop year to June 2008 from 27 million tonnes in the previous year, a senior official from the Canadian Wheat Board said Friday (Apr 13).

"A shift in acreage toward oilseeds is likely to bring down output of wheat," R. Bruce Burnett, director, weather and crop surveillance, said on the sidelines of a conference on food grains.

He said India is likely to import between 2 million to 3 million tonnes of wheat in the year to September 2007, down from 6 million tonnes in 2005/06 due to a rise in local output.

Thursday, a senior Indian commerce ministry official told Dow Jones Newswires that Canada plans to step up wheat sales to India as another supplier, Australia, experienced a devastating drought in 2006.

Burnett pegged Canada's wheat sales to India in the 2007 calendar year at slightly lower than 1 million tonnes.

He said international wheat prices are likely to remain stable in the short term because of support from firm corn prices.

Burnett said global wheat output is likely to be around 624 million tonnes in the crop year to June 2008, up from 590 million tonnes in the previous year.