FAO Cuts Wheat Production Forecast
August 6, 2010| |
The Food and Agriculture Organization (FAO) has lowered its global wheat production forecast for 2010 due to unfavorable weather. From 676 million tons in June, the forecast is now set at 651 million tons. Despite the decrease in wheat production, FAO says that the world market is still better than during the world food crisis in 2007/08.
The Russian Federation is still coping with drought and countries such as Kazakhstan and Ukraine anticipate lower yields. Canada is also expecting a decline in its production. These countries are major exporters of wheat to the rest of the world. Wheat prices have increased by over 50 percent since June but world inventories are adequate to cover anticipated production shortfall.
See the FAO news release at http://www.fao.org/news/story/en/item/44570/icode/
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