ENGLAND — World grain production is projecting to hit 2.226 billion tonnes this year, a new report by the International Grains Council (IGC) has revealed.
The IGC in its October Grain Market Report noted a monthly reduction in maize (corn) output prospects, which were partly offset by increased estimates for wheat, sorghum and rye.
According to the IGC, world grain production will increase 40 million tonnes year-on-year, driven by record corn output and bigger harvests of wheat, sorghum, oats and rye.
The United States and Brazil are expected to have larger corn crops with smaller totals anticipated in the EU, Ukraine, Argentina, South Africa and China.
Consumption is also expected to reach a new high of 2.223 million tonnes, an increase of 29 million tonnes compared to last year, the IGC report showed.
According to the IGC, carryover stocks will see only a modest rise of 3 million tonnes, to 619 million tonnes, due to a contraction in corn.
“The drop in maize stocks is mainly tied to a further drawdown in China, but with those in the EU also seen at an unusually low level,” IGC said in the report. “In contrast, following larger harvests, accumulations are foreseen in the US and Brazil.”
World trade in 2020-21, on other the hand, is forecast to increase 4 million tonnes month-over-month, to 403 million.
The increase according to IGC, is mainly on higher figures for wheat (including larger imports by China and Pakistan) and corn (the EU and China).
World soybean production is estimated to increase 9% in 2020-21 to a peak of 370 million tonnes.
Chinese feed demand is a major reason for the uptick, but gains are likely across a range of smaller consumers, the IGC said.
Global carryovers are mostly unchanged year-over-year, but major exporters’ inventories are likely to tighten on a reduction in the United States.
Projections for global rice production in 2020-21 were maintained at a record of 504 million tonnes. Due to an increased figure for total use, carryovers for the grain, were lowered slightly to 178 million.
The International Grains Council (IGC) is an intergovernmental organization which oversees the Grains Trade Convention and seeks to promote cooperation in the global grain trade.
It’s tasked with enhancing market stability and world food security through providing impartial analysis on supply and demand fundamentals in the grains and oilseed sectors.
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