Global Grain Production Set To Persist With Second-Biggest Crop On Record

Friday, June 3rd, 2016 | 606 Views

A global grain production that has persisted over the last three years is set to continue next season, as grain harvest expand to the second-highest on record, according to the International Grain Council (IGC).

World grain production will be 9 million metric tonnes more than the forecast in April as wheat crops improve in the European Union, the US and Russia, who is the world’s top exporter.

“The outlook for 2016-17 grains production continues to improve, with output potentially the second highest ever,” the IGC said. “Grain stocks will likely grow again, with much of the increase in China.”

Weak currencies in the major producing nations have also encouraged farmers to increase output.

Global grain production will reach 2.015 billion tonnes in the season starting in July, up 0.6 percent from a year earlier, the IGC estimated. Global stockpiles will expand to a record 474 million tons, with China accounting for about 40 percent of them. Farmers around the world will gather 722 million tonnes of wheat, 0.7 percent higher than an April forecast but down 1.9 percent from a year earlier. Corn production at 1.003 billion tons will be 3.3 percent larger than in the current season.

“While wheat, barley and sorghum crops are predicted to be smaller, this is being outweighed by a bumper maize (corn) harvest, including gains in the US and Argentina, as well as recoveries from poor outturns the year before in the EU and South Africa,” the report said.

The projection for global grains consumption is also up by 10 million tonnes month-to-month, to 2.009 billion, a 1 percent increase year-on-year.