FAO: world cereal production to rise to 465 million tonnes

World trade in cereals forecast for the 2020/2021 season increased by 10.6 million tons from December, to 465.2 million tons, according to FAO.

Thus, the amount represents an expected expansion of 25 million tons (5.7%) compared to the record of the previous cycle.

According to FAO forecasts, trade in all major grains will increase in the 2020/2021 season.

Large new purchases of corn and barley by China, to meet growing demand for feed, has driven an increase in the forecast for trade in coarse grains in 2020/2021 (July/June) by about 10 million tonnes compared to the previous forecast.

Now this data is set at a record level of 232.3 million tons.

This reflects an increase of almost 22 million tons (10.2%) compared to last year’s level.

The FAO also projected that China’s corn imports were revised upward by 10 million tonnes since December, reaching an all-time high of 20 million tonnes.

FAO

The revision reflects the exceptionally large purchases in recent weeks, mainly by the United States.

According to FAO calculations, world wheat trade in 2020/2021 (July/June), estimated at 184.5 million tons, will remain practically unchanged since December and at a level similar to the estimated level of 2019/2020.

The main revisions this month include a 1 million tonne upward adjustment in purchases from China, offsetting a 1 million tonne cut in Iraqi imports due to higher than previously anticipated domestic production in 2020.

Likewise, FAO estimates that international rice trade will increase 7.9% in 2021 (January-December) to reach 48.4 million tons, which is 800,000 tons more than expected in December.

The revision reflects the prospects for continued strong export growth by India, while for imports it reflects expectations of a further recovery in purchases in the Far East, led by Bangladesh, after the approval of the rights remissions by that country.