Argentine farmers are expected to plant 6.5 million hectares of wheat in the 2019/20 season, the government said in a report, citing good rainfall as the reason for the increase from its previous forecast of 6.46 million hectares.
FAO's latest forecast for world cereal production in 2019 - available in the Cereal Supply and Demand Brief- points to an increase of 1.2 percent from the previous year to reach 2 685 million tons, a sharp downward revision from the forecast made in May when global cereal production was predicted to expand by 2.7 percent.
The United States and Brazil have agreed to steps aimed at lowering barriers to agricultural trade, focusing on wheat, pork and beef, the presidents of the two nations said in a joint statement on Tuesday.
Brazil is considering granting an import quota of 750,000 metric tons of U.S. wheat per year without tariffs in exchange for other trade concessions, according to Brazilian officials. That is about 10% of Brazilian annual wheat imports and is part of a two-decade-old commitment to import 750,000 metric tons of wheat a year free of tariffs that Brazil made — but never kept — during the World Trade Organization's Uruguay Round of talks on agriculture.
World cereal production for 2016 should amount to 2 571 million tonnes, up marginally from FAO's October forecast and 1.5% above the 2015 output. The updated figure, released Monday in the Cereal and Supply Demand Brief, reflects a substantial upgrade of the outlook for world wheat production, which is now expected to rise to 746.7 million tonnes, a 4.3 million increase from FAO's October forecast.
For a third year in a row the United States will be the top wheat supplier for Brazil, displacing Argentina from its historic position, according to the latest release from Brazilian consultancy Trigo & Farinhas. This piece of information is significant given the world prices for grains and wheat planting prospects in South America.
In the last few days the Argentine news media has been focusing on the fact that there does not seem to be enough wheat or corn to go around, which is driving prices higher and causing concern for the users of these grains. This is particularly true for bakeries which have been forced to charge soaring prices for bread.
Argentina is on track to harvest more wheat this season as greater acreage and coming warm weather should offset any yield loss caused by recent frosts that hit in the last days of the Southern Hemisphere winter.
World total cereal production is forecast to increase by about 7% in 2013 compared to last year, helping to replenish global inventories and raise expectations for more stable markets in 2013/14, according to the latest issue of FAO quarterly Crop Prospects and Food Situation.
Argentina’s 2012/2013 grain and oilseed crop reached a record 105 million tons, announced President Cristina Fernandez underlining the excellent performance of the maize harvest and yields.