The forecast for global grain yields has been revised by 19 million tons to a total of 2.069 million tons. This makes the yield the second highest in years, only the yield from last season was higher.
The adjusted production forecast is mainly due to Argentina and the United States (US), where more corn will probably be harvested. Russia also ensures higher production of wheat and barley, among other things.
Higher expectations for feed and food production mean that not only does grain production increase, but its global consumption also increases. As a result, the expected stock will shrink for the first time in years. This is expected to drop to a total of almost 2017 million tons during the 2018/500 season, compared to 525 million tons a year earlier.
Soybeans almost at record
The report confirms its August forecast for rising soybean production. The climb to 348 million tons is almost a record. Only last year was production higher, at 351 million tons.
However, due to the enormous demand, stocks are falling for the first time in years. China in particular is entering the buyers' market.
Driving factors
After general weak prices in the previous months, the GOI Sub Index for grains, rice and oilseeds increased by 2% in September. This is due to several factors, including good export demand, logistics issues, exchange rate fluctuations and anything but ideal growing weather in the Southern Hemisphere.