FAO downgraded its forecast for world grain trade in 2016/17 MG to 393 million tons
according to a new forecast by the FAO, the volume of global grain trading in the season 2016/17 MG exceed the February estimate and will be 393 million tons, will still be 0.4% or 1.8 million tons lower than in season 2015/16.
Reduction of world trade in cereals is due to a significant decline in feed grain trade, although the trade in wheat and rice will grow.
global consumption of grains in the 2016/17 MG increased relative to the February to 2.58 million tonnes due to a significant increase in forecasts plassering losses of wheat in India in 2016, as well as to improve the estimate of the consumption of corn in Mexico and China for animal feed.
Recall that the forecast of world wheat production in 2017 is 744,5 million tons, which is 1.8% below the peak level in 2016, but still above the average of the last five years.