Tighter World Wheat Supply Picture

WASHINGTON - Sep 12/07 - SNS -- This seaon's global wheat harvest is projected 4.2 million metric tons (MT) lower at 606.24 million as reduced output in Australia, Canada, and EU- 27 more than offset higher output in FSU-12, according to the latest forecasts by the USDA's World Agricultural Outlook Board.

Production for Australia is lowered 2 million MT based on early crop stress from dryness during August and early September. Production for Canada is lowered 1.2 million MT based on official government estimates that reflect significant yield reductions as a result of widespread summer heat and dryness. EU-27 output is reduced 3.1 million MT as preliminary government estimates indicate sharply lower output, particularly for France, Germany, and the United Kingdom. Persistent and heavy rains damaged ripened wheat and cut yields throughout northern Europe.

FSU-12 production is raised 2.2 million MT based on harvest results that indicate better-than-expected yields for winter wheat in Ukraine as harvest weather was favorably dry. Higher expected output for Russia reflects increased winter and spring wheat area. Spring wheat crop prospects remain good for Russia with excellent soil moisture conditions at seeding and generally supportive growing season weather during July and August. FSU-12 production is also raised on increases for Belarus and Uzbekistan.

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