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| food represents about 10-20 per cent of consumer spending in industrialised countries, but up to 65 per cent in developing nations. |
The US Department of Agriculture on Wednesday said strong worldwide demand for wheat will result in US stocks falling to the lowest level in 33 years.
US crop-year ending stocks of wheat are forecast to fall to 362 million metric tons in 2007-2008, down from 456 million metric tons a year earlier and the lowest level since 1973-1974.
In its monthly World Agriculture Supply and Demand report, the USDA raised its projections for wheat exports as foreign buyers seek supplies despite prices rising to a record high.
However, the price of wheat fell from a record as the US government forecast a fall in global production that was less than analysts expected. (See Wednesday's Finfacts report).
The world probably will harvest 606.24 million metric tons of wheat by May 31st, down 0.7 percent from last month's forecast, the US Department of Agriculture said. Australia's crop will be 21 million tons, down from an August forecast of 23 million tons, the USDA said. Some market analysts had forecast that Australia crop would drop as low as as 15 million tons.
Wheat for December delivery fell 30 cents, or 3.4 percent, to $8.605 a bushel on the Chicago Board of Trade, after earlier reaching a record high of $9.1125 in overnight trading. The 30 cent fall was the maximum permitted for one day on the exchange.
Italian consumers associations have asked people to refrain from buying or eating pasta for the day, in protest against recent price increases.
The groups are requesting the government intervene to reduce pasta prices.
An increase in the price of wheat in recent months has forced pasta manufacturers to pass on the cost.
Pasta is a national dish in Italy, with each Italian eating on average 28 kg (62 lb) of pasta every year.
Italian supermarkets are expected to mark up pasta prices by 20% by the end of this year.
