Wheat stocks across the world are estimated to touch an eight-year high of 171 million tonnes (MT) in 2009-10, while less global trade is expected on increased production in major importing countries like Iran, Turkey, Syria, Algeria and Morocco, a report has said.
According to a report of the International Grains Council (IGC), world wheat stocks at the end of 2009-10 are projected at an eight-year high of 171 MT, which include 53 MT in five major exporting countries.
The major wheat exporters are the US, Australia, EU, Argentina and Canada.
However, the global trade in wheat forecast at 112 MT is 10 MT short of the quantity traded in 2008-09.
The IGC report said that better crops in Iran, Turkey, Syria, Algeria and Morocco should result in reduced purchases.
"World wheat production is forecast at 651 MT, 37 MT below the 2008 record. While winter wheat remains generally in satisfactory condition in Europe and the CIS, more rain is needed to assure good yields," it said.
The IGC also said that India is harvesting a large crop. The Indian government has pegged wheat output at over 74 MT.
The global grain body has revised upwards the world wheat consumption estimate to 642 MT after assessing India's domestic demand. In March, the IGC had pegged the consumption at 640 MT for 2009-10.
According to the report, international wheat prices increased in April from the March levels even though there was ample supplies. The rise in the price is attributed to various factors including speculation of a lower crop size in 2009-10.
There is an increase in wheat import by Egypt, Iran, Pakistan and Turkey from the Black Sea region during 2008-09.
