Tighter World Wheat Outlook

WASHINGTON - Jul 9/10 - SNS -- Wheat supplies for 2010-11 are reduced with world production projected 7.5 million metric tons (MT) lower at 661.07 million MT as smaller crops in FSU-12, Canada, EU-27, India, and Turkey more than offset higher production in the United States and China, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Production for Canada is lowered 4 million MT as persistent June rains limited seeding in the Western Prairies. Production is lowered 4.5 million MT and 3.0 million MT, respectively, for Russia and Kazakhstan as continued drought and high temperatures reduce yield prospects for spring wheat.

EU-27 production is lowered 1.1 million MT reflecting early indications of lower-than-expected yields in northern Europe. India production is lowered 1.0 million MT on indications that heat during late grain fill reduced yields.

Production is lowered 0.5 million MT for Turkey as early harvest results indicate disease has reduced expected yields. Production is raised 2.5 million MT for China where favorable June weather boosted harvested area and yields.

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