Drought stress in the EU has led to a downgrade in estimated world grains production for 2022-23.
In its latest monthly Grain Market Report on Thursday, the International Grains Council (IGC) trimmed its forecast of total world grains production (wheat and coarse grains) by 3 million tonnes from June to 2.252 billion – now 2% below a year earlier and potentially the first contraction in five years.
Large portions of EU, including France, Germany, and Italy have been suffering through a historic heatwave, with crops like corn, oats, barley, and others under severe stress. Much of the winter wheat crops on the other hand are in the process of now being harvested.
With production down and an offsetting decline in expected consumption, total world grains ending stocks for 2022-23 were left unchanged from last month at 583 million tonnes, although still well down from 607 million and 604 million the previous two years.
New-crop global wheat production was revised higher this month, up 1 million tonnes from June to 770 million. But with consumption revised higher as well, ending stocks for 2022-23 are now estimated at 272 million tonnes, down from 273 million in June and the 282 million forecast for 2021-22.
For corn, 2022-23 production was reduced 1 million tonnes from June to 1.189 billion, down from 1.22 billion a year earlier. Ending stocks, at 271 million tonnes, were unchanged from June but down from 285 million for 2021-22.
The IGC lowered its 2022-23 soybean production estimate by 4 million tonnes from last month to 386 million, still well up from 351 million the previous year. Projected ending stocks were cut 2 million tonnes from last month to 54 million, versus 43 million in 2021-22.
Click here to see more...