The forecast for the production of cereals in the world has increased
The volumes of grain production in the world in the current MY will reach a level of 2.64 billion tons, which is 2 million tons more than the forecasted volume in December.
Such information was provided by FAO.
This change of forecast is mainly due to higher levels of production grains in such countries as Australia, as well as some countries in East and West Africa.
The report also says that wheat production will reach 744 million tons. This figure indicated a decrease in production volumes of this crop during the last two seasons.
Decrease in production volumes is expected in the EU and Russia, as the yield has slightly decreased. But it is expected that increasing production in Australia will help to restore balance.
In addition, it should be recalled that in the next marketing year, Ukraine is able to increase production as well as export of fodder barley and corn.
According to the latest forecasts, global grain production for this year will increase by 2.2% compared to last year, with both wheat and corn production expected to increase. This could lead to an increase in export volumes and a reduction in prices on the global market, which could have economic benefits for grain producers in some countries. However, there are also risks associated with increased competition on global markets and changes in grain demand. This could lead to a decrease in grain prices and a negative impact on the economy in some countries that depend on grain exports. In addition, the increase in grain production could lead to environmental problems such as negative impacts on soil and human health.