World Wheat Crop May Rise 4%

WASHINGTON - May 11/07 - SNS -- International wheat output for 2007-08 is projected 4% higher than in 2006-07 at 616.87 million metric tons (MT), but remains below 2004-05 and 2005-06, according to the latest forecasts from the USDA's World Agricultural Outlook Board.

Higher projected production in Australia, Brazil, FSU-12, India, and the United States is partly offset by lower expected output by Argentina, Canada, and China. EU-27 production is expected to be up just 2% from 2006-07 due to dry April weather and freezes that reduced yield prospects, especially in Germany and Poland.

Tight exportable supplies in key export competitors such as Argentina, Australia, Canada, and EU-27 are expected to boost U.S. wheat exports and prices. World wheat feeding is expected to fall 3% in 2007-08 with declines in Canada and EU-27 more than offsetting higher wheat feeding in the United States.

Wheat imports are expected to increase for Egypt, EU-27, Morocco, and several smaller countries, but decline for Brazil and India with larger crops expected in both countries. World exports are projected higher with increases for Australia, Russia, Ukraine, and the United States more than offsetting lower exports for Canada and EU-27. Global ending stocks for 2007-08 are projected at 113.4 million MT, down 6% from 2006-07, and the lowest since 1981-82.

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