August 28, 2010

Global wheat output to fall 1.1%

According to the International Grains Council, the global wheat output will be 1.1% smaller than last month's forecast, lagging consumption for the first time in three years.

The wheat harvest will be 644 million tonnes for the 2010-11 crop, down seven million tonnes from last month's estimate and below record demand of 657 million tonnes, the London-based council said in a report today. Adverse weather curbed prospects for crops in the EU, Kazakhstan, Russia, Ukraine and Australia.

Russia's crop will be 44 million tonnes, down from 50 million tonnes forecast last month and 61.7 million tonnes a year earlier, the council said. Wheat harvest estimates were lowered for Germany to 23.5 million tonnes from 24 million tonnes last month, Kazakhstan to 12 million tonnes from 13.5 million tonnes, Ukraine to 17.5 million tonnes from 18.5 million tonnes, and Australia to 21.5 million tonnes from 22 million tonnes.