(1888PressRelease)
December 06, 2007 - World wheat futures prices could take a fall next year as world stockpiles are predicted to rise in 2008-09, according to the International Grains Council (IGC).
Executive director Etsuo Kitahara told Bloomberg: "Stockpiles are at a very low level. For the next season I expect a slight addition to them."
The IGC forecasts planting will increase four per cent and stocks to 110 metric tons by the end of June next year due to high prices after a four year slump.
Others think this is too conservative. Nobuyuki Chino, president of the Tokyo-based trading company Unipac Grain, told Bloomberg: "I expect a rise of five per cent or more. If the weather is normal, supply will overwhelm demand, sending prices lower.''
This is expected to have a knock on effect on the supply of corn and soyabeans, both of which are used for the production of biofuels.
Competition for land use means that farmers will plant the crop they think most likely to turn a profit. Based on this the IGC predicts corn planting will fall.
Further analysis of the wheat futures market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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