WHEAT

• The grain of a cereal grass used in the form of flour for white bread, cakes, pastries, etc.; the plant
which bears the edible grain in dense spikes. 
• There are over 30,000 varieties of this ubiquitous grain.
• Cultivated for over 6,000 years, wheat is second only to rice as a grain staple.
• Wheat contains more gluten than other cereals, making it an excellent choice for breadmaking. 

• Varieties of Wheat

The three principal types of wheat used in modern food production are: 
• Triticum vulgare - it provides the bulk of the wheat used to produce flour for bread making and
for cakes and biscuits (cookies).
• Triticum durum - Durum is the hardest of all wheats. Its density, combined with its high protein
content and gluten strength, make durum the wheat of choice for producing premium pasta
products
• Triticum compactum
 India in World Wheat Industry
Metric Ton    
Country
1995 2000 2003

Argentina 9,542,315 16,146,620 14,530,000

Australia 16,504,000 22,108,000 24,900,000

Canada 24,989,400 26,519,200 23,552,000

France 30,880,000 37,353,400 30,582,000

Germany 17,763,000 21,621,548 19,296,100

India 65,767,400 76,368,896 65,129,300

Iran 11,227,540 8,087,756 12,900,000

Kazakhstan 6,490,000 9,073,500 11,518,500

Pakistan 17,002,400 21,078,600 19,210,200

Russia 30,118,660 34,455,488 34,062,260

Turkey 18,015,000 21,008,600 19,000,000

United Kingdom 14,312,000 16,704,000 14,288,000

United States of America 59,404,000 60,757,488 63,589,820

 Factors Influencing Wheat Markets

• Crop size
• Crop conditions
• The level of surplus or shortfall
• Agricultural and economic policies in the
country and abroad
• Worldwide demand for wheat
• Domestic flour milling needs
• The relative strength of the currancy
 The basics of wheat economics
• When supplies of a commodity are excessive, prices decline.
• When demand for the commodity increases, so does the price. Typically, companies invest from 5% to
7% of their gross revenues to product promotion.
•  Individually, wheat farmers have little impact on demand, but putting all the heads together can make a
significant difference in product demand and market price.
• And that leads to the ultimate goal of the improved income for wheat producers. 
• Harvested wheat grain is classified according to grain properties for the purposes of the commodities
market.
• Wheat buyers use the classifications to help determine which wheat to purchase as each class has special
uses.
• Wheat producers determine which classes of wheat are the most profitable to cultivate with this system. 
• Wheat is widely cultivated as a cash crop because it produces a good yield per acre, grows well in a
temperate climate even with a moderately short growing season, and yields a versatile, high-quality flour
that is widely used in baking.
• Most breads are made with wheat flour, even many breads named for the other grains they contain,
including most rye and oat breads.
• Many other popular foods are made from wheat flour as well, resulting in a large demand for the grain
even in economies with a significant food surplus. 
 World Wheat Supply and Disposition
World Wheat Supply And Disposition
2006-07 2007-08 2008-09 2009-10 2010-11 2010-09 2006-10
Prelim. Proj. % Chg 5 yrs Avg

Million Metric Tonnes)

BEGINNING 147.69 128.18 122.6 165.33 196.53 18.9 152.07

STOCKS

Production 595.62 611.02 683.26 682.15 641.44 -6 642.7

TOTAL 743.31 739.2 805.86 847.48 837.97 -1.1 794.76
SUPPLY

TOTAL USAGE 615.19 617.3 642.3 650.96 663.31 1.9 637.81

ENDING 128.18 122.6 165.33 196.53 174.66 -11.1 157.46

STOCKS

Stocks/Use % 20.8 19.9 25.7 30.2 26.3 -12.8 24.6

Trade 115.63 116.43 143.2 134.38 125.71 -6.5 127.07

Source: U.S.D.A.
October, 2010
 Indian Scenario
• India has the largest area in the world under wheat. However, in terms of
production, we are only the third largest behind EU-25 and China.
• India produces about 65-75 million tons of wheat a year, which is about 35% of
India's total food grain production of 210-212 million tons.
• The major wheat producing states of India are Uttar Pradesh, Punjab, Haryana,
Madhya Pradesh, Rajasthan and Bihar. Which together account for around 93% of
total production.
• Wheat is sown during November to January and harvested during March to April.
The wheat-marketing season in India is assumed to begin from April every year.
• Indian wheat is largely soft/medium hard, medium protein, bread wheat. India also
produces around 1.5 million tons of durum wheat, mostly in central and western
India, which is not segregated and marketed separately.
 Indian Scenario(contd..)
• Government announces Minimum Support Prices (MSP), which is the
minimum price at which procurement has to be carried.
• The total procurement of wheat by Government agencies ranges from 8 to 20
million tons, accounting for only 15-20% of the total production. 
• India consumes around 70-72 million tons of wheat a year. Most domestic
wheat consumption is in the form of homemade chapatis or rotis using
custom milled atta, although usage of branded packaged atta marketed by
large companies, is increasing in cities.
• There are around 200 large flourmills in India, with a milling capacity of
around 15 million tons.
• India exported around 5 million tons subsidized by Govt in 2003-04, as a
result of surplus stock. However, current Govt. policies are not in favour of
exports. Southeast Asia and Gulf countries are major importers of Indian
wheat.
 Global Scenario

• The world wheat production in the recent years has been observed to be hovering
between 560-580 million tons a year.
• The biggest cultivators of wheat are EU-25, China, India, America, Russia, Australia,
Canada, Pakistan, Turkey and Argentina. India, EU-25, China, India and US, the four
largest producers account for around 58% of the total global production.
• World wheat consumption is consistently growing with growth in population, as it is
one of the major staple foods across the world. The major consuming countries of
wheat are EU, China, India, Russia, USA and Pakistan.
• Around 16-19% of the world wheat production is traded annually between countries.
The annual world trade in wheat is to the extent of 102-106 million tons. America,
Australia, Canada, EU-25 and Argentina are the five largest exporters of wheat in the
world.
• Major importing countries that tops in the figures are European Union, China, Egypt,
Japan, Brazil and European Union. Other importing nations are Mexico, Indonesia,
Algeria, Philippines, and Iraq. However the import amount varies year to year
depending upon the domestic production.
 Uses

• Wheat is one of the staple food used most commonly in India.

The bread made of wheat flour is very relishing, nourishing, strength giving
and very good for people having very high appetite.It cures flatulation and
causes the formation of phlegm. Wheat flour cures constipation, ley
loosening up the hardened stool.
• 50 gms of wheat soaked in 465 grams of water for the whole night. In the
morning it is mashed up in that same water and after filtering that same
water and drinking it after mixing some sugar into it, cures the emanation of
sperms through urine within a week.
• Drinking the solution of wheat dissolved in milk and mixed with some sugar
cured the bleeding of the nose.
• Taking two or three spoonful grains of wheat during the time of having food,
increases the resistance power of the body, it also cures constipation and is
very beneficial for cancer patients
  
Wheat Commodity Exchanges

• There are 3 North American commodity futures exchanges for Wheat:

• · Chicago Board of Trade (CBOT)
• · Kansas City Board of Trade (KCBOT) - Hard Red Winter / HRW
• · Minneapolis Grain Exchange (MGEX) - Hard Red Spring / HRS