NEW DELHI(Commodity Online): India has produced a record 94 million tons of the wheat in 2012 and has raised its 2013 wheat export limit by 500,000 tons from a year ago which may turn wheat bullish. As on December 1, wheat stocks were at a whopping 37.6 million tons in the country.The more export allocation is to reduce the bulging stocks.

In 2012 India exported 2 million tons of wheat and the country as allowed 2.5 million tonnes of wheat exports for 2013.India also raised the price of wheat payable to farmers next year to 1,350 rupees per 100 kg, up from 1,285 rupees this year. India is one of the biggest consumers of wheat in the world.

According to United States Department of Agriculture's(USDA) World Agricultural Supply and Demand Estimates in December , global wheat supplies for 2012/13 are projected 1.6 million tons higher as a 3.7-million-ton increase in world production more than offsets lower beginning stocks mostly reflecting higher 2011/12 wheat feeding for China.

China wheat production for 2012/13 is raised 2.6 million tons based on the latest official estimates from the National Bureau of Statistics. Production for Australia and Canada are raised 1.0 million tons and 0.5 million tons, respectively, also based on the latest official government estimates. Partly offsetting these increases are small reductions for Brazil and EU-27, the report says.

Global wheat exports for 2012/13 are raised slightly this month. Exports are raised 0.5 million tons each for Australia, EU-27, and India, more than offsetting the U.S. reduction. Exports are lowered for Paraguay and Turkey. Imports are raised for Brazil, China, Iran, and Russia, but lowered for Turkey. World wheat ending stocks for 2012/13 are projected 2.8 million tons higher on increases for the United States, Australia, Russia, and EU-27.