BUMPER WHEAT CROP EXPECTED IN INDIA
India is anticipating a record wheat crop in the 2024-25 marketing year on higher than initially expected yields in the country’s northern states due to favorable weather through harvest, according to a report from FAS. FAS projects wheat output to reach 114 million tonnes in the April 2024-March 2025 period. That’s 3.6% higher than last year’s total of 110 million tonnes and nearly 10% higher than the 104 million tonnes harvested in 2022-23. The expected bumper crop comes at a critical time for India which in May reported that wheat stocks in government warehouses had reached their lowest level since 2008 with a 10% year-on-year drop. FAS is also projecting slight increases in corn and rice production in 2024-25, at 37.5 million and 138 million tonnes, respectively. The rice output, if realized, would be a record.
(Link: WorldGrain)
CEREAL EXPORT PRICES RISE IN MAY
Global export prices of all major cereals rose in May, with wheat prices increasing the most, according to a report released on June 7 by FAO. The Cereal Price Index (CPI) increased by 6% from April to 118.7 points. FAO said the sharp monthly rise in wheat prices was mainly due “to growing concerns about unfavorable crop conditions for the 2024 harvests, possibly constraining yields in some main producing areas of several major exporting countries, including in parts of Europe, Northern America and the Black Sea region. Additionally, damage to the Black Sea shipping infrastructure exacerbated the upward pressure on prices.”
Corn export prices also increased in May, reflecting production concerns in both Argentina and Brazil, along with limited farmer-selling activity in Ukraine. It noted that spillover effects from the wheat markets also affected maize prices. For other coarse grains, world prices of barley and sorghum also rose in May. The FAO All Rice Price Index edged up by 1.3% in May, “driven by higher Indica quotations, influenced by expectations of sales to Indonesia and Brazil, and easing harvest pressure.”In its World Cereal Supply and Demand Brief, FAO estimated global cereal production for marketing year 2023-24, which ends June 30, would reach a record 2.847 billion tonnes, up 1.2% from the 2022 outturn.
(Link: WorldGrain)
