December 15, 2005

World wheat prices seen bearish short term
 

The world wheat market is expected to remain under pressure for the remainder of the 2005-06 (July-June) marketing year due to plentiful stocks, but fundamentals are expected to turn more bullish in 2006-07, according to Strategie Grains, a monthly analytical report published Thursday.

The recent upward revision to wheat output in the southern hemisphere would weigh on the world wheat market for the rest of 2005-06, the report indicated.

But looking to 2006-07, a more bullish impact should stem from a drop in former Soviet Union wheat plantings, and increased import needs in India and China, said Strategie Grains.

Potential exists for a reduction in 2006-07 world stock levels after the drop in 2005-06, the report added.