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The International Grains Council (IGC) has further trimmed its global wheat production forecast for 2012-13 to 657 million tonnes (mt) due to decline in output in Russia, Australia and Europe.
Last month, the London-based organisation had forecast the output at 662 mt for 2012-13, lower than the record output of 696 mt last year.
“World production for 2012-13 is cut by a further five million tonnes to 657 MT, a six per cent year-on-year decline... It is mainly due to downward revision for Russian and Australian wheat, together with EU wheat,” IGC said in its latest grains report.
China and India are the top two wheat producing countries in the world. The crop year varies from country to country. In India, wheat sowing for 2012-13 will start from next month and the harvesting will be undertaken from middle of April 2013.
The global wheat consumption is expected to decline to 679 mt this year from 691 mt in 2011-12 as high prices are expected to reduce feed demand, it said.
World trade is placed a little lower at 132 mt for this year, against 145 mt in the year ago following reduced trade in feed wheat, it added.
According to IGC, the carry over stock is estimated to be lower at 175 mt as compared to 197 mt in the review period because major exporters are becoming increasingly tight.
On global wheat prices, it said they have outperformed due to concerns over Black Sea exports and dry conditions in Australia.
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