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Viterra Down 4% as Canada Wheat Board Warns on Crop Production Drop; Comes as Wheat Prices Rise

Viterra Inc. (VT.TO) is down 4% after the Canadian Wheat Board said today that

Western Canada will only produce 15.6 million metric tons of wheat in the 2010-2011 crop year which is slated to start tomorrow - down 17% from an estimated 18.8 million tons in the previous corresponding period - due to unusually wet weather.

However, this comes as Bloomberg reports that wheat has risen to the highest price in almost 14 months as droughts in exporting countries including Russia threaten to reduce supplies.

Bloomberg cites the London-based International Grains Council as saying global inventories will fall to 192 million metric tons by June 30, 2011, down 2.5% percent from a year earlier. Russia's harvest will drop 19% to 50 million tons this year, the IGC is cited as saying.

Drought has damaged 32% of planted areas in Russia, the government said.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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