Grain production over 2,1 billion tons for the first time

The forecast for the total world production of grain (wheat and coarse grains) is 8 million tons higher than forecast in January. It reports that International Grains Council (IGC)† If this forecast comes true, grain production will exceed 2,1 billion tons for the first time. 

In January, a total grain production of 2094 million tons was expected. In February, this forecast was raised to 2102 million tons of grains. As a result, production rose by 4,8 percent compared to last season. Predicted record crops of wheat and maize in particular have a large share in this.

The higher yield is related to higher consumption. The forecast for grain consumption was raised from 2062 million tons in January to 2069 million tons in February. Consumption will then rise by 4,3 percent compared to last season. 

According to the report of the IGC, the record harvests in Australia largely account for the higher forecast. Production in Australia is expected to increase from 36,8 million tons to 52,4 million tons of grain. 

The largest grain supplier, however, remains America, with a total production of 465,9 million tons. Again, this is related to higher consumption. The IGC expects US$363,4 million of grain to be consumed in 2016/17.

The IGC also expects export figures to rise further. In previous years, an average of 1230 million tons of grain was exported. This season is expected to be more than 1300 million tons. An increase in Russia's exports, from 110 million tons to 121 million tons, seems to contribute in particular to this. 

The forecast for the 2017/18 season is slightly more negative. The IGC expects a 2 percent drop in total production next season. 

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.