Subject to the world economic cycle, wheat price fluctuates markedly. After reaching a record high of $492/MT in March, 2008, world wheat price slumped afterwards, tumbling 60% by now, below the cost of wheat production, dampening farmers’ initiatives in wheat production.

Wheat production is largely determined by wheat price. World wheat safety index went down in the last few years until this year when the index picked up to 29%, above the safety line of 25%.

It is predicted that wheat price may keep going south till late 2009, likely to bring down world wheat production by 8% in 2009. On the other hand, falling wheat price may cause wheat-importing countries to increase wheat consumption. It is estimated that world wheat consumption may go up 2% in 2009 over the previous year.

List

News Briefs 1

World Wheat Production Expected to Drop in 2009 2

Flour Imports & Exports in Oct. 4

Rice Imports & Exports in Oct. 6

Corn Exports in Oct. 8

Barley Imports in Oct. 9

Grain Procurement Progress 10

Weather & Crop Conditions 12

Crop Conditions 13

Weather Forecast (November 28, 2008?December 4, 2008) 14

Price Trends 14