FAO predicts record grain production in 2017/18 MG
According to experts of FAO, world production of grain in season 2017/18 slightly exceed the record figure 2016/17 MG.
new balance supply and demand for cereals from the FAO estimate of world production in comparison with the previous forecast increased to 2,612 2,613 billion tons, which is 5.8 million tonnes will exceed the level of the 2016/17 season.
Total production of coarse grains will reach a record level of 1,339 billion tons, mainly through the countries of South America and southern Africa.
While global wheat production will decline from 760,2 million tonnes in 2016/17 MG to 752,8 million tonnes in 2017/18 MG.
In General the world grain market is good, but excess amount of sentences over projected demand will lead to rising inventories.
it is Expected that the ratio of inventory and consumption of grain stabiliziruemost the highest in the last 15 years 27%, than for wheat, the figure will be somewhat higher, and for coarse grains and rice – below.
This will contribute to the stabilization of world grain prices. The average index of prices for FAO for grain in October amounted to 152,8 points, which is 7.4% or 10.5 points higher than October 2016.