Lower wheat prices boost demand

04 July 1997

Lower wheat prices boost demand

The International Grains Council said weakening wheat prices had increased demand from importing countries. Consumption in the current crop year is forecast to exceed production slightly. This would cause stocks to decline.

Wheat prices have dropped sharply over the last 12 months. World weather
conditions have affected the current years production with rain hitting the crop in Argentina and Morocco, and drought blighting Australia. Good weather is expected to have boosted production in the UK, Kazakhstan and India. Production in Canada will be cut because of lower wheat acreages.

The drought in the European Union is expected to have cut yields in southern regions but output is expected to match the good crop last year with higher plantings offsetting lower yields.