Algeria - which typically imports some 5,000 tonnes of wheat, largely from France - said it was on track narrowly to beat last year's grains harvest of 6.1 million tonnes, despite warnings from farmers over heavy rains.

 

Algeria's state grain agency pegged production at 6.2 million tonnes and expected the country's bill for cereal imports to fall to US$1.2 billion this year. Two years ago, Algeria spent US$3.2 billion on grains.

 

Meanwhile, Iran said that its wheat output would rebound to 15 million tonnes this year, a figure higher than many analysts had forecast, after two seasons marred by drought.

 

Iran's wheat imports hit a record 9.3 million tonnes in 2008-09, reversing the country's brief interlude as an exporter, follow dry weather which damaged winter grain harvests.

 

However, the 2010-11 crop, for which harvest is in its early stages, has enjoyed plentiful winter rains and unusually warm weather, which has left crop development in many areas one month ahead of normal.

 

Earlier this month, the USDA pegged Iran's wheat crop at 14.4 million tonnes, saying that the country was set for "both an earlier harvest and higher yields".

 

According to the country's own crop forecast, farmers would require four million tonnes of wheat for their own needs, leaving 11 million tonnes for other purposes.

 

Iran said last month that it would export 2 million tonnes of wheat to three Arab countries this month, ending a three-year period without foreign sales.

 

The announcements come as wheat exporters such as Australia, the EU and Russia are, in the face of bumper inventories, striving for new export markets.