US revises wheat output forecasts for 2010
The USDA has revised its forecast for wheat output in 2010, but not to as low a level as was feared.
The United States Department of Agriculture (USDA) dropped its global wheat output forecast Friday, but by less than what was expected, reassuring food markets made fragile by ongoing droughts in Europe and floods in parts of Asia.
The USDA expects 643 million tons of wheat to be produced in 2010, which is less than what they’d predicted in August (645.7 million tons).
However, analysts had anticipated an even lower forecast of 641 million tons, which had pushed global staple food prices up further, increasing the vulnerability of many regions to food shortages.
The price of wheat per bushel dropped marginally following the report, but remains 40% higher than it was in March.
The major concern is the USDA’s forecast for consumption of 661 million tons of wheat, which means on average, world governments will need to use 9% of their wheat reserves.
For countries with insufficient reserves, this could be a severe problem resulting a food shortage crisis.
Big News Network.com Saturday 11th September, 2010