This report evaluates the U.S. and world wheat markets for the 2002-2012 period by using the Global Wheat Policy Simulation Model. This analysis is based on a series of assumptions about general economic conditions, agricultural policies, weather conditions, and technological change. Both the U.S. and world wheat economies are predicted to improve for the next ten years. World demands for both common and durum wheat are expected to grow faster than world production of the two wheat classes, resulting in gradual increases in prices of the wheat varieties, which are predicted to increase 15.3% for durum wheat and 17.3% for common wheat for the 2002-2012 period. World trade volumes of both classes of wheat are expected to expand, but trade volume of durum wheat may grow faster than common wheat.