FAO CUTS WHEAT PRODUCTION FORECAST BUT CONSIDERS SUPPLIES ADEQUATE
Baku, August 6 (AZERTAC). The impact of unfavorable weather events on crops in recent weeks has led Food and Agriculture Organization (FAO) to cut its global wheat production forecast for 2010 to 651 million tones, from 676 million tones reported in June, according to FAO website.
But despite production problems in some leading exporting countries, the world wheat market remains far more balanced than at the time of the world food crisis in 2007/08 and fears of a new global food crisis are not justified at this point, FAO said.
The turmoil in global wheat markets, which has intensified in recent weeks, is evidence of the growing dependence on the Black Sea region, an area renowned for erratic yields, as a major supplier of wheat to world markets. In addition, an expected production decline in Canada, another major producer and exporter of wheat, has reinforced market worries.