Commodities Buzz: IGC Sees Global Grains Output At Record 2290 Million Tonnes

27 Jun 2022 , 11:19 AM

According to a latest update from the International Grains Council (IGC), at a record 2,290 million tonnes or mt, the world 2021/22 total grains (wheat and coarse grains) production is forecast slightly lower m/m (month-on-month), while estimates for consumption and closing stocks are overall little-changed. Including modest increases for wheat and maize, global trade (Jul/Jun) is pegged 1m t higher m/m, at 417m. IGC, in its latest June month update stated that mainly due to a revised maize projection for Ukraine, where acreage exceeded initial expectations, 2022/23 global total grains output is 4mt higher compared to the May report. Although forecast consumption is boosted slightly, most of the larger supply is channelled into stocks, seen 3mt higher than before, at 583m (aggregate of respective local marketing years). Trade is set to drop to 405mt, up by 1m m/m. Marginal upgrades for South America and India lift the 2021/22 world soyabean production estimate slightly m/m but, at 351m t, is markedly lower y/y (year-on-year). On the basis of increases for Brazil and some minor producers, 2022/23 world output is seen marginally higher than before and up 11% y/y. With supplies little-changed m/m, an increased figure for total use results in reduced expectations for stocks, albeit still up significantly y/y. The Council’s prediction for trade is maintained m/m. With an upgrade for India more than offsetting reductions for other producers, 2021/22 world rice output is estimated marginally higher m/m, at 515m t (+1%).Powered by Commodity Insights