World wheat stocks to touch 8-yr high: IGC

Wheat stocks across the world are estimated to touch an eight-year high of 171 million tonnes in 2009-10. Though it will lead to less global trade as production may rise in major importing countries like Iran, Turkey, Syria, Algeria and Morocco, a report has said.

According to a report of the International Grains Council (IGC), out of the world wheat stocks of 171 million tonnes at the end of 2009-10, 53 million tonnes of wheat is estimated to be from five major exporting countries.

The major wheat exporters are the US, Australia, EU, Argentina and Canada.

However, the global wheat trade forecast, which is at 112 million tonnes, is 10 million tonnes short of the quantity traded in 2008-09.

The IGC report said that better crops in Iran, Turkey, Syria, Algeria and Morocco should result in reduced purchases.

“World wheat production is forecast at 651 million tonnes, 37 million tonnes below the 2008 record. While winter wheat remains generally in satisfactory condition in Europe and the CIS (Commonwealth of Independent States), more rain is needed to assure good yields,” it said.

The IGC also said that India is harvesting a large crop. The Indian government has pegged wheat output at over 74 million tonnes.

The global grain body has revised the world wheat consumption estimate upwards to 642 million tonnes after assessing India’s domestic demand. In March, the IGC had pegged the consumption at 640 million tonnes for 2009-10.