Commodity Online
NEW DELHI: Following forecasts for a bumper wheat crop in Australia, global wheat prices may come down in the coming months with the supply this year from Australia expected to touch 23-24 million tonnes.

Good widespread rains around the country have propelled this year’s bumper crop.

There is not a lot of downside in the wheat crop below 19 to 20 million tonnes and some forecasters are calling for a crop even bigger than that.

Meanwhile as expected, world grain prices eased considerably during July. Improved crop prospects and supplies – wheat, corn (maize), rice and soybean – and falling crude prices provided the trigger for speculators to liquidate their long positions.

August usually is the crucial month when weather can make or break crops. Conditions across the world, especially in the US, need to be watched closely.

Crop conditions in India can potentially impact world prices of a host of commodities; and trading houses are already closely monitoring conditions here.

The world wheat balance sheet for 2008-09 continues to look healthy with consumption set to trail production for the first time in three years and world inventory poised to reverse the declining trend.

World wheat production during 2008-09 has been projected further up at a record 662 million tonnes following higher acreage and improved weather.

World wheat consumption is projected to increase by close to five per cent to again a new high of 639 mt.