After revising down the crop forecast for Russia, the US Department of Agriculture has also cut the forecast for global wheat production and supply.

According to USDA, the wheat production would be lowered by 15.3 million tones and slip to 645.7 million tones. The crop production of Russia has been affected by extreme heat and drought which cut the production by 15%. Even the neighboring Kazakhstan has also reported cuts in forecast for wheat production.

But the good thing is that, the global wheat stocks are still above the crisis level which was seen in 2007 and 2008. According to USDA, there are 194 million to 174.8 million global stocks present at this time. The cut to the production and supply forecasts has been larger than expected before.

But it could be revised again because of hike in production forecasts in the US, Australia, Uzbekistan and India. This news has brought some relief in the market.

As per the USDA, the reduced supplies and increased prices of wheat would pull down the global consumption of wheat in the coming months or year.