Financial Daily from THE HINDU group of publications
Thursday, Oct 03, 2002
Financial Daily from THE HINDU group of publications Thursday, Oct 03, 2002 |
|
|
|
|
|
Agri-Biz & Commodities
-
Foodgrains Global wheat prices firm up as supplies tighten Our Bureau
MUMBAI, Oct. 2 GLOBAL wheat production prospects deteriorated further this month. Rains in Canada and persistent drought in Australia have contributed to a further reduction in crop size in recent weeks. This has further widened the annual production-consumption mismatch, which inevitably will lead to a sharp drawdown of stocks. Not unexpectedly, wheat prices, especially of premium milling grades, have advanced strongly during the past month. With tightening global wheat supplies, the market has got segmented. While prices of premium grades are rising, those of medium and lower grades are not rising as steeply. Interestingly, an increasing tendency to blend premium wheat with lower grades is becoming evident in the market, especially in the Asian region. This is expected to provide a fillip to wheat prices overall. For the year 2002-03, global wheat output is forecast at 565 million tonnes, according to the latest assessment of London-based International Grains Council (IGC). This number will mean a massive 14 mt decline from 2001-02 output of 579 mt. World consumption is expected to grow fairly strongly, with forecast for 2002-03 placed at 593 mt, a massive 28 mt above year's production. The increase of 6 mt in consumption over the previous year will be accounted for by higher feed use, especially in the European Union and CIS, IGC pointed out. Global wheat trade in 2002-03 is projected at 101 mt, down 5 mt from previous year. The EU will continue to import large quantities, although it will be the second largest exporter. At 138 mt, world wheat stocks are expected to reach one of the lowest levels in recent years. Wheat inventory has been falling consistently year after year. Stocks with the five major traditional exporters will be down to 32 mt Indian ending stocks, mostly of softer low-protein type, will be around 27 mt, IGC noted.
Send this article to Friends by
E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|