World wheat production to fall in 2010-11

World wheat production will fall 0.9% in 2010-11, while output of coarse grains such as corn will expand 1.4%, the United Nations' Food and Agriculture Organisation (UN FAO) said.

The global wheat crop will drop to 676.5 million tonnes from 682.4 million tonnes, the Rome-based UN agency said. The coarse-grain crop will be 1.13 billion tonnes, compared with 1.12 billion tonnes, it said. Consumption will expand 1.8% to 675 million tonnes for wheat and 2.1% to 1.13 billion tonnes for coarse grains, the FAO said.

"Early indications for cereals in the 2010-11 season point to near-record world production, further buildup of cereal inventories, a modest increase in world trade and overall, a fairly comfortable cereal supply and demand outlook," the FAO said.

Wheat production is shrinking after prices declined for two consecutive years. The grain traded as high as US$13.495 a bushel in Chicago in 2008 and was at US$4.4725 yesterday.