According to an analyst with the Canadian Wheat Board, more acreage in major wheat producing countries and good growing conditions will help world wheat production to climb about 38.6 million tons in 2007-08 from the previous year, to around 661 million tons.

"The key to the wheat market will be corn," wheat market analyst Jason Newton said at CWB's annual Grain World conference.

Newton predicts a move to lower-quality wheats in 2007-08 while weather patterns are closer to normal.

In the U.S., Newton sees wheat acreage climbing to around 59 million acres, up 3.5 million from 2006, partly due to improved drought conditions. USDA's projection for U.S. wheat acreage was slightly higher than Newton's, at 60 million acres.

The International Grains Council recently projected 624 million tons of world wheat production in 2007-08.