Higher corn production and supply glut are likely to drive wheatprices this year and it will extend its bearish trend to the next year also experts at the International Wheat Seminar currently underway in the Indian city Chennai said Wheatprices are likely to trade between $5.75 ($211 tonne) and $5.50 ($202) in the near term and could even drop to $5 ($183) over the next six months.The seminar also called for improving yields developing crop varieties that are pest and disease resistant. The seminar emphasised the need for the use of genetic tools with adequate safety regulations to develop high yield crops.
About the Indian scenario speakers at the seminar said modern infrastructure can benefit the farmers. But the government should promote private investments in grainstorage infrastructure.The USDA has forecast Indian wheatshipments lower at 3 mt. India has exported about 1.7 million tonnes of wheat in the current fiscal.
The wheat exports stood at 5.5 million tonnes in 2013 14. Private trading accounted for a major portion of India’s wheatexports and government shipments have stopped. Wheat stocks in central pool stood at 381 lakh tonnes as on August 1.
Higher domestic prices against a lower global prices make India wheatexports among many other commodities unviable at global markets. India has adequate stocks of wheat and if the Monsoon recovers next year s crop could also turn out to at this year s level of 95.6 mt.and modern infrastructure can benefit farmers.
(Source – http://www.blackseagrain.net/novosti/wheat-likely-to-be-hit-by-higher-corn-production-supply-glut)