The US Department of Agriculture has released its first grain supply forecast for the 2006/07 marketing season, pegging world production at just over 600m tonnes.

The figure is 3% down on last year and would mean that world stocks would fall to a 25-year low of 128m tonnes just before harvest 2007.

EU wheat exports are also forecast to rise next year, and together the news pushed up new crop prices on both sides of the Atlantic.

November feed wheat prices rose £2-£3/t on the week to £73/t.