Global supply situation comfortable as 2023/24 marketing season draws to close – FAO

The United Nations Food and Agriculture Organization (FAO) has revised its forecast for the global production of cereals, rice, maize, and wheat for the 2023/24 marketing year, showing an overall increase with rice production expected to reach a new high. The global utilization of these cereals is also anticipated to rise, with significant increases in feed use, particularly in China and the European Union. The FAO also expects the world cereal stocks to be slightly above the previous year, despite a decrease in maize inventories in Brazil and the United States, and wheat stocks in the European Union and the United States, there is an expected rise in global rice stocks. International trade in cereals, coarse grains, wheat, and rice is also projected to increase, with China playing a key role in the trade of coarse grains and sorghum. However, the forecast also highlights challenges such as adverse weather conditions in key producing countries like Brazil, South Africa, and several Southern African nations, which could affect maize production. Additionally, the war in Ukraine continues to impact wheat production and trade, with ongoing conflicts and weaker profit margins leading to below-average production forecasts.