New Delhi (PTI): Favourable weather condition in the wheat growing nations like the European Union and the US is likely to boost the global wheat output up to 662 million tons in 2008-09, slightly better than last year 658 million tons, International Grains Council said on Friday.

"Improved prospects in the European Union, the Commonwealth of Independent States (CIS), the US, and Australia raise the production forecast by 54 million more than 2007," International Grains Council (IGC) said in its latest grain market report.

The London-based organisation said that rains benefited crops in key producing areas but delayed harvesting may put quality at risk in parts of the EU, Ukraine and the US.

"Sown areas in Australia, encouraged by timely showers, are at a record high," IGC said.

Wheat production in India, world's second biggest producer, stood at 78.40 million tons during 2007-08.

According to IGC, global consumption is projected to rise to 639 million tons from previous year and trade would also increase to 114 million tons.

"Food use of wheat in developing countries has improved resiliently in the face of high prices, and is likely to increase further in 2008-09," it noted.

Meanwhile, international wheat prices registered significant losses as harvesting of bigger than anticipated northern hemisphere crops gathered pace and the outlook improved in Australia.

In the US, export quotations dropped by over 40 dollar per tonne as world buyers turned to competitively-priced alternative suppliers.

The biggest fall was in feed wheat due to quality downgrading, especially in Ukraine, IGC said.