The IGC forecasts a surplus of wheat in the world in season 2016/17 MG
In a new report by analysts IGC increased by 7 million tons to 729 million tons forecast world wheat production in the 2016/17 season MY. Experts expect a surplus of wheat in the world, because the volume of its production by 3 million tons will exceed the demand.
Through the excessive rains, which were held in several major producing countries, affected the quality of grain. So next season will increase the consumption of wheat for feed needs.
Experts also increased its forecast of barley production in the world and has left unchanged the yield of corn. The total global gross grain harvest in the season 2016/17 MG may be of 2.03 billion tonnes, 11 million tonnes higher than the previous forecast. In consequence, the supply of grain, and ending stocks reached a record high. However, because of reduced demand for grain from China reduced the volume of world trade to 319 (329 in 2015/16МР) million. .Transitional balances at the end of the 2016/17 MG are expected to reach 482 million against 467 million tons last year.
This has led to a significant decline in world prices for grains and oilseeds.
Prices in Ukraine have responded to such information the same noticeable decline. In the last week on conditions CPT-port prices for grain fell to 8-10 $/t and currently are:
- the feed wheat supply in August of 143 $/t,
- the wheat protein 12.5% of the August delivery 155 $/ton
- the wheat protein 11.5% of supply in August is $150/ton
- the corn for November delivery 153 $/t,
- the rape is the August delivery of $380/ton
- the soy for November delivery 395 $/ton
- the barley 132 $/ton.