The Canadian Wheat Board has hiked its estimate for returns to wheat farmers in the coming season by Can$8 a tonne, citing forecasts of global production cuts and tricky weather in some North American cereal heartlands.

The board, which handles about 13m tonnes of wheat a year, said all classes of wheat were in line for the increase, which would take the payout for the highest-protein grades to Can$310 a tonne.

The increase reflected estimate of a cut of 30-50m tonnes in global wheat production in the 2009-10 season.

Prices should also be supported by concerns about the US hard red winter wheat crop following dry weather in key growing areas in Texas, Oklahoma and Kansas.

"Parts of the hard red winter growing region continue to be under moderate to severe stress due to lack of soil moisture," the CWB said.

Meanwhile, flooding in the Red River Valley, which stretches from North Dakota and Minnesota in the US into Manitoba in Canada, had, at best, delayed planting of spring wheat, and may tempt farmers to switch to soybeans instead.

The CWB added: "Dryness in China, western Iran and Argentina should be supportive to prices."

However, the board cut projections of returns to durum farmers by $3 a tonne, citing increased production in north Africa.

"The north African durum crops are looking exceptionally good as they enter the critical reproductive growth stage," the board said.

Forecasts for malting barley payouts were cut by $8 a tonne, given a bright outlook for European crops.