Wheat prices were down 7% in the month of July and are now down over 35% from the peak levels seen in March. And, we could see further pressure on wheat prices according to the International Grains Council (IGC), which recently raised its 2008/09 production forecasts by 4 million tons to a record 662 million tons. This production number represents a nearly 9% increase off of 2007 levels and is higher than the current world consumption projection, which stands at 639 million tons. The IGC attributes this increased forecast to improved prospects in the EU, the CIS, the U.S. and Australia.
