Milling Journal - Q2 2008 - (Page 39) Record World Wheat Crop Forecast 2008/09 crop could reduce wheat prices International agribusiness banker Rabobank Group said in April that the prospect of a record world wheat harvest in 2008/09 could help to reduce wheat prices on global markets. According to the first edition of Rabobank’s Soft Commodities Monthly Report (April 2008), world wheat crops appeared to be in good condition, especially in Europe, the Black Sea region, and soft red winter wheat areas of the United States. The International Grain Council’s (IGC) April Market Report also reported that the outlook for the next wheat crop appears favorable in most major wheat producing countries. IGC forecast world wheat production to reach 645 million tons in the 2008/09 season, up from 604 million tons in 2007/ 08. High Prices Trigger Planting Rabobank said high prices will stimulate an increase in wheat plantings aroud the world. The bank expects world wheat plantings to increase by 5% in 2008. The United States Department of Agriculture (USDA) called for wheat acres in the United States to increase by 6% in 2008. Rabobank said rains in Australia could double the size of last year’s wheat harvest. Rabobank analysts predict that 2008 world wheat production will exceed demand by 12 million tons. However, the bank warned that this would be only a partial recovery in wheat stocks. Rabobank said it is likely to take a number of years of strong production to rebuild world wheat stocks to more traditional levels. Frank Zaworski, editor Response No. 391 Response No. 392 MILLING JOURNAL Second Quarter 2008 39 http://www.kcsupply.com http://www.columbiaokura.com http://www.kcsupply.com http://www.columbiaokura.com
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