Paraguay, Indonesia to record uptick in grain production in latest USDA projections
GLOBAL – Cereal production in Paraguay and Indonesia is expected to rise in the 2021-2022 market due to higher acreage and yield, according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
In Paraguay, the USDA projects that a reduction in soybean and zafrinha corn production will free up more idle acres for wheat sowing resulting in an estimated 1.2 million tonnes being produced.
The US agency further projects wheat exports for the 2021-2022 market year to increase to 500,000 tonnes, the highest in three years.
The domestic consumption of wheat, on the other hand, is forecast at 730,000 tonnes, slightly higher than the past two years, but generally, consumption is stable over time.
Corn production for the 2020-21 is expected to reach 3.5 million tonnes but the final volume depends on the weather over the next two to three months as planting, completed in mid-March, was later than normal, the USDA said.
For the 2021-2022 market year, USDA projects corn production to rise to 3.9 million tonnes, a peak since the 2018-19 marketing year. Corn exports during this period are forecast at 2.25 million tonnes, 12% higher than last year on expected larger output.
Indonesia corn production ticks up
In Indonesia, an increase in harvested area and improved economic conditions is anticipated to boost Indonesia’s corn production, according to a Global Agricultural Information Network (GAIN) report from the USDA.
The country’s corn production in the 2021-22 marketing year is expected to be 12 million tonnes while consumption of the crop is projected to be 9.1 million tonnes, an increase from 8.7 million tonnes in the previous marketing year.
Imports of corn in the 2021-22 marketing year are expected to be 1.3 million tonnes as new feed facility open in response to growing consumption demand for corn.
Rice production in Indonesia is anticipated to ramp back up due to higher yields from the end of La Niña. The USDA forecasts rice production in the 2021-22 marketing year to be 55.6 million tonnes, up from 53.9 million tonnes in the previous marketing year.
To maintain its minimum year-end stock level of 1.5 million tonnes to 2 million tonnes of rice the Indonesian government however plans to import 1 million tonnes of rice in 2021.
In line with population growth and a recovering economy, the country’s 2021-22 marketing year wheat imports are also expected to tick up slightly to 10.4 million tonnes, according to the USDA.
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