This report evaluates the U.S. and world wheat markets for the 2007-2017 period 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 remain strong for the next ten years. World demand for both common and durum wheat are expected to remain strong. The price levels in 2007, due to high corn demand in the ethanol industry, should be maintained since increases in production are limited due to land constraints in most countries. World trade volumes of both classes of wheat are expected to expand, but trade volume of durum wheat may grow faster than that of common wheat.