The United Nations has joined in the latest round of cuts to world wheat production forecasts, on a mixed day for prices of the grain.

The UN's Food and Agriculture Organisation, which said it was to hold a meeting in grain markets next month, cut to 646m tonnes its forecast for world wheat output � 30m tonnes below its initial June estimate.

The latest revision reflected a cut of 5m tonnes to 43m tonnes in the forecast for output in Russia, "more than offsetting higher forecasts for crops in a number of other countries, including the US and China".

World wheat stocks will end 2011 at 181m tonnes, some 12m tonnes below initial hopes.

The cuts follow downgrades last week by the International Grains Council and Rabobank to world wheat production estimates.

Quality concerns

The FAO update came as European wheat prices once again outperformed their US peers, helped by continuing concerns for the impact of rain in Germany, noted in normal years for the high level of milling wheat in its crop.

"The appalling weather in northern Europe is obviously taking its toll on the quality of wheat crops still left outside," a UK grain merchant said.

However, while in most areas of the UK, milling wheat varieties had already been harvested, "it's a different story in northern Germany", the merchants added.

"They are not as accustomed to dealing with the problems of high moistures and low hagbergs."

Meteorlogix said that wet weather was "again causing some delays to the winter wheat harvest through portions of central and northeast Europe", adding that showers would build in the UK towards the end of the week.

London wheat for November added 1.7% to �154.60 a tonne, catching up after a market holiday on Monday, when other markets gained.

Paris wheat added E0.25 to E227.75 a tonne, while Chicago's September lot was 2.75 cents lower at $6.68 � a bushel at 16:50 GMT.