World grain trade will grow thanks to Ukraine and China – FAO

The forecast of total world grain production in 2023 is estimated at 2840 million tons. This is stated in the report of the Food and Agriculture Organization of the United Nations (FAO).

Experts forecast global grain consumption in 2023/24 at 2823 mln tonnes, up 1.1% from the previous year, mainly due to the increased use of corn and wheat for livestock feed.

Global cereal stocks are expected to increase exclusively due to feed grains, with the global cereal stocks-to-consumption ratio projected to end the year at a “comfortable” 31.1%, up from 30.9%.

“World cereal trade is projected to grow by 1.3% compared to the previous year, thanks to improved forecasts for corn exports from Ukraine and higher demand from China,” the organization added.

FAO also increased its preliminary forecast of world wheat production in 2024 to 797 mln tons (+1% compared to 2023).

“Lower wheat prices led to the decline of winter wheat plantings in the U.S. by 6% compared to last year. America, where production may still increase due to good yield prospects. Favorable weather conditions also support expectations of increased wheat production in 2024 in Russia, which is a major exporting country, as well as above-average production growth in China, India and Pakistan,” the experts explain.

Tags: grain, prices, wheat, USA, FAO, crop forecast, corn