Global wheat harvest will be bigger than expected, grain council claims

THE global wheat harvest will be bigger than expected after the outlook for production improved in Russia and the European Union, the International Grains Council said.

Farmers will reap 674 million metric tons of wheat in the 12 months through next June, 8m tons more than estimated last month, the London-based council said in a report yesterday.

Corn output will reach 859m tons, 1m tons more than earlier forecast.

Wheat slid 5.5% in Chicago trading this year on rain that limited drought damage in Europe and on expectations bigger crops in Russia and Ukraine will boost supply from the Black Sea region. Both returned to the export market this year.

“Wheat yield prospects in particular improved in the last month, with some key areas in the EU and Russia receiving beneficial rains,” the grains council said.

Global food prices monitored by the United Nations reached a record in February. Higher food costs helped drive 44m more people into poverty since June 2010, the World Bank says. Russia’s grain exports in July are expected to reach 2m tons.

Wheat production in the EU will probably be 135.7m tons, higher than previously forecast, a Bloomberg survey of analysts and traders this week showed.

Corn has climbed 9.7% this year in Chicago on concerns heat in the US will hurt production.

“Much depends on the outcome of the US harvest, the outlook for which was at first boosted by a higher-than- anticipated plantings estimate, but subsequently put in question by a spell of adversely hot and dry weather,” the grains council said.