ABARES raises forecast for 2018-19 global wheat prices on low output.

The Australian Bureau of Agricultural and Resource Economics and Sciences has raised its forecast for global wheat prices in 2018-19 to $243 per tn from $234 projected in March. The forecast is 6% higher than the average of $230 per tn in 2017-18. Wheat prices are seen rising in light of a decline in production in major exporting countries and expectations of stronger demand for human consumption. The agency has estimated global wheat output in 2018-19 at 743 mln tn, down 1.9% from a record high crop last year. The most significant fall in production comes from the Black Sea region, comprising Russia, Kazakhstan and Ukraine, where output is seen falling to 114 mln tn from 127 mln a year ago. Wheat output in the European Union is also seen 1% lower on year at 150 mln tn. For India, the agency estimates production at 93.5 mln tn, down from 98.5 mln a year ago. While output is likely to fall, global consumption of the grain is seen rising to 748 mln tn in 2018-19 from 740 mln a year ago.