Global wheat supplies will slide by end of June on drought, Council says

Stocks will drop to 192 million metric tons at the end of the 2010-11 crop year from 197 million tons at last month's close, the London-based council said in a monthly report today. The group cut its outlook for this year's wheat harvest.

Russia may harvest 45 million tons of wheat this year, the Russian Grain Union said this week, down from 62 million tons last year. The drought in the country has damaged 10.1 million hectares (25 million acres), or 32 percent of all planted areas, Agriculture Minister Yelena Skrynnik said July 23.

"A prolonged period of dry weather and high temperatures significantly reduced yield prospects in Russia, Kazakhstan, parts of Ukraine and northwestern areas of the EU," the council said, referring to the European Union.

The group last month had forecast an increase in global wheat stocks to 201 million tons.

The world wheat harvest will be 13 million tons smaller than forecast last month at 651 million tons in 2010-11, the council said. Wheat consumption will amount to 655 million tons, according to the report.

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