The International Grains Council has, for a third successive month, raised its forecast for global wheat output, while noting that low prices will cut US sowings ahead of next year's harvest.

The influential intergovernmental group raised by 4m tonnes to 666m tonnes its estimate of 2009-10 wheat production, citing "better-than-expected yields" in Europe, Russia, Ukraine, Uruguay and Algeria.

Russian wheat crop would come in at 60.0m tonnes, the IGC said, adding 2.0m tonnes to its estimate. The US Department of Agriculture, meanwhile, has pegged Russia's crop at 56.6m tonnes.

"Russia's grain exports could be nearly as large as in 2008-09," the report said.

However, with "rainfall continuing to be inadequate", its forecast for the Argentine crop was cut by 700,000 tonnes to 7.8m tonnes.

Dry weather threat 

The IGC's corn production estimate for Argentina was also cut, by 2.0m tonnes to 14.0m tonnes, with weak rains also blamed for a 3.0m-tonne cut, to 157.0m tonnes, in the forecast for China's harvest.

"Despite recent rains, dry conditions dimmed crop prospects in China and also in Argentina, where planted areas are likely to be considerably reduced," the IGC said in a monthly report.

America's corn harvest was pegged 4.0m tonnes higher at 322.0m tonnes following "favourable September weather", albeit remaining 7m tonnes below Washington forecasts.

Global corn output was estimated at 785m tonnes, 2m tonnes lower than in last month's report and 5m tonnes below the 2008-09 harvest.

Year end inventories will be, at 134m tonnes, the lowest for four years.

'Reduced plantings'

The report added that US farmers would cut wheat planting for harvesting in 2010, but declined to give a figure.

"Sowings of 2010 winter wheat crops are progressing well in most northern hemisphere countries," the council said.

"While areas may increase in some, including India, the steep reduction in market prices from year-ago levels is expected to lead to reduced plantings in the US."