But many have said a rebound in world wheat production was needed this year and it looks like it is happening.

The Russian Agricultural Ministry has reported that wheat harvest and exports were significantly higher at this time than they were in 2007.

The Ukraine also reported excellent grain harvests of 70pc more than a year ago.

While Rabobank cut the estimate of Australia's wheat harvest by a half million tons, their forecast of 20.5 million is still a significant increase over the past two year's harvests that were hit by severe drought.

A report out of Europe shows a 25pc increase in forecasted wheat production over last year.

"What we are looking at now is an increase of world wheat production to the tune of nearly 70 million tons," says World Trade Outlook chairman Gerry Bange.

"That is a very, very sharp increase; over 11pc increase in one year."

The US wheat production has also increased by 21pc over last year.

However, Mr Bange says there is a slight problem with this rebound.

"The recovery is coming at a time where we are having sort of an economic slowdown world wide," he said.

"That has contributed to our decrease in commodity prices that we've seen of late.

"So it depends really on which side of the fence you're on.

"If you are looking at it from the perspective of less pressure on food prices it's good news; if you are looking at it from the perspective of the farmer it's not such good news."

Mr Bange says the board has cut US average wheat prices for next season by 25 cents to $7 a bushel which is still more than a half dollar above what growers received this past season.