Mumbai (commodities control )- Global grains production and trade are forecast to reach record highs in 2020-21, according to the International Grains Council’s (IGC) latest monthly grain market report, released June 25.
The IGC projects total grains production in 2020-21 to increase by 62 million tonnes from the previous year, led by a 55-million-tonne increase in corn output and a 6-million-tonne jump in wheat production, both of which would be record highs if realized.
While consumption prospects are somewhat uncertain for the coming marketing year, the IGC said “all components of demand are assumed to rise, taking total use to fresh high of 2.218 billion tonnes.”
The soybean sector is projected by the IGC to see gains in production and trade in 2020-21. A nominal increase for Brazil lifts the projection for global output by 8% to a record 364 million tonnes.
Given assumed firm import demand from China, world soybean trade is placed at a peak of 160 million tonnes, up 1% month-on-month and up 5 million tonnes from 2019-20.
The IGC noted that although Brazil set a record in soybean production in 2019-20, global output fell by 7% on a significantly reduced US harvest, with declines also in Argentina, Canada, India and Ukraine.
Slight yearly increases are forecast across the board in the global rice sector, with production increasing by 2% to 501 million, trade rising by 1% to 44 million on stronger demand from buyers, particularly in Africa, and consumption increasing by 1% to 501 million, all of which are records.
The IGC Grains and Oilseeds Index strengthened by 1% from the previous month, with gains for corn, soybeans and rice export quotations outweighing falls for wheat and barley.
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