A day after India targeted to produce more wheat, International Grains Council (IGC) announced the global wheat output to be at 676 million tonnes for 2008-09 season, up by 11 per cent from last year.
India targeted to produce 78.5 million tonnes during 2008-09, against 78.4 million tonnes in the previous year.
IGC revised the global wheat output forecast upward by four million tonnes from last month to 676 million tonnes for 2008-09. It is 11 per cent more than last season.
Larger-than-expected wheat yields in the EU, Russia, and Ukraine improved crop prospects and would more than offset a lower forecast for Australia, where rains are still inadequate, a IGC Grain Report said.
Due to poor growing conditions and rains during harvest period, the quality of wheat in several countries including Argentina have been affected, which will now be used as animal feed.
On wheat prices, IGC said, "The subsequent turmoil in financial markets also infected wheat futures. With estimates of this year's record world wheat crop continuing to rise, prices of this grain fell further in the first half of September".
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Global wheat consumption is expected to be more by 35 million tonnes to 646 million tonnes this year.
Although projected end-season stocks of 41 million tonnes in the five major exporters are marginally lower than last month, they remain much above last year's 29 million tonnes, the report said.
Meanwhile, the world trade forecast is expected to rise by seven million tonnes to 116 million tonnes this year.
Estimated wheat imports for feed use to countries such as Israel, South Korea, and Thailand continue to rise while demand for good quality milling wheat has been robust, it said.