MercoPress. South Atlantic News Agency

FAO trims world 2020 cereal output forecast

World cereal utilization in 2020/21 is now forecast to rise up to 1.9% from 2019/20, led by expectations of increasing feed use of maize and sorghum in China

FAO has further lowered its forecast for global cereal production in 2020, which now stands at 2 742 million tons - still a record high and 1.3% above the previous year's outturn. The new forecasts released today with FAO's Cereal Supply and Demand Brief point to world coarse grains production of 1,470 million tons, wheat production of 761.7 million tons, and rice output of 508.4 million tons.

Looking ahead, planting of the northern hemisphere's winter wheat crop is underway and remunerative prices are expected to increase sowings in several major producing countries. However, crop conditions in the United States are moderately poorer due to dry weather conditions, influenced by the prevailing La Niña weather phenomenon.

World cereal utilization in 2020/21 is now forecast to rise to 2 744 million tons, up 1.9% from 2019/20, led by expectations of increasing feed use of maize and sorghum in China as well as a rise in the production of maize-based ethanol in Brazil and the US

Worldwide cereal stocks by the close of seasons in 2021 are predicted to decline to 866.4 million tons, translating into a global stock-to-use ratio of 30.7% - which FAO notes is a five-year low but still a relatively comfortable level.

World trade in cereals in 2020/21 is forecast to rise 3.4 percent from the previous year to 454.6 million tons, driven primarily by a faster than expected pace in maize sales by the U.S.A. and continued strong purchases from China.