HKK Commodities updated the news today ☘️
FAO SEES CEREALS OUTPUT REBOUNDING IN 2022-23
The United Nations’ Food and Agricultural Organization (FAO) in its latest supply and demand brief estimated a slight increase in global cereal production in 2022-23 to 2.815 billion tons, which would be on par with the record output realized in 2020-21. Corn production is projected to increase by 2.7% to a record level of 1.215 billion tons in 2022-23, buoyed by strong yields in Brazil and Ukraine. Wheat output, on the other hand, is seen declining by 2.6% from the previous marketing year to 781.1 million tons, due to continuing dry-weather conditions at Canada and the European Union that curtailed yields, accounted for much of this month’s decrease. Despite a slight downward revision since July, world rice output in 2023-24 is still seen recovering by 1.1% from the previous season to 523.2 million tons, according to the FAO.
World cereal utilization in the season ahead is forecast at 2.807 billion tons, 0.8% above the 2022-23 level. The FAO lowered its forecast for world trade in cereals in 2023-24 to 466 million tons, a 1.7% drop from the previous marketing season. Traded volumes of wheat and corn are predicted to decline for a variety of reasons, including falling exports by Ukraine due to trade disruptions associated with the ongoing war.
EU EXPECTS LARGEST SOYBEAN HARVEST IN PAST SIX YEARS
EU major oilseed production in 2023-24 is expected to increase 6%, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture. Total major (soybeans, rapeseed and sunflower) oilseed production is estimated at 33.3 million tons, up from 31.4 million tons in 2022-23. Compared to last year, soybean production is expected to increase 16% to 3 million tons, the largest EU crop in the past six years. Rapeseed production in 2023-24 is expected to increase 2% to 19.8 million tons while sunflower production is expected to increase 12% from last year’s record-low crop to 10.5 million tons.
