MUMBAI (Commodity Online): The area under wheat cultivation is expected to shrink in 2010-11, in the Northern hemisphere that includes North America, about two-thirds of Africa, all of Asia and Europe due to the falling global prices for the grain.

According to US Department of Agriculture (USDA), the higher supplies have impacted on wheat prices, which compelled farmers to change the crop. However, the global wheat output is expected to soar sharply against the early estimation of made in May 2009 by 20 million tonnes to 678 million tonnes.

High supplies have put a dampener on prices and enthusiasm for planting wheat will likely be down, especially for the northern hemisphere spring crop which will be planted in May and June, USDS said.

Global prices have started declining due to a rise in supplies following a jump in production. The prices of US hard-red-winter wheat fell to $205 per tonne in February from $269 per tonne in May 2009, it added.