Global Production & Future Prices Update
According to the International Grains Council latest grain market report, the total grains supply and demand outlook for 2018/19 has tightened. A 12m t cut for world grains production is due to adverse weather conditions in the EU and Russia and the EU, which has damaged prospects for barley, wheat and maize. Although global consumption is reduced, projected carryover stocks are down by 12m t m/m, with the year-on-year decline now seen at 54m, including a drop of 34m in the major exporters.
Total Grains Supply & Demand Summary – figures in millions of tonnes (m t)
(*Argentina, Australia, Canada, EU, Kazakhstan, Russia, Ukraine, USA)
Total grains production in 2018/19 is expected to be a three-year low, as bigger outturns of maize and sorghum only partially compensate for poorer wheat and barley crops. Although total supply will be smaller, consumption is seen reaching a third successive record, with the largest gains for food and industrial uses.
(Source: International Grains Council, Grain Market Report GMR 489 2nd July 2018)