Global wheat output may dip sharply this year: FAO

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

26 Feb 2010

Global wheat output is likely to decline sharply this year because of lower acreage under wheat as farmers shift to other crops due to poor prices driven by high carryover stocks, said a senior official of the United Nations’ Food and Agriculture Organization (FOO). However, the supply is expected to be stable with strong stockpiles, said Abdolreza Abbassian, Rome-based secretary of the Intergovernmental Group for Grains under the FAO.
According to FAO, the global wheat stocks are projected to soar by 28% to around 183.5 million metric tons by June 2010 as against last two years stock levels.
Farmers have shifted to other crops such soybean and corn in countries like US because of poor prices for wheat driven by high stockpiles, said Abbassian. In reaction to high prices, there had been a large increase in plantings in 2008. Global wheat output is estimated at 678.6 million tons in 2009, up from 625.5 million tons in 2007.
Last week, at its annual Agricultural Outlook forum, the U.S. Department of Agriculture forecast a 12% drop on year in the country’s wheat production to 1.945 billion bushels and a 9% drop in acreage to 53.8 million acres.
According to analysts, Black Sea producers are also likely to produce less wheat this year as they are saddled with large inventories.

Source: Commodity Online