IGC: GLOBAL CORN OUTPUT TO RISE BY 5%
The International Grains Council (IGC) in its latest Grain Market Report forecasts a 60-million-tonne increase in global corn production in marketing year 2023-24, up 5% from the previous year. On the other hand, wheat production is declining from 805 million tonnes in 2022-23 to 783 million tonnes, a nearly 3% decline year-on-year.
Global inventories of total grains were revised slightly upward from the previous month in the report. But at 588 million tonnes, it would still decline by 2% from last year and be at its lowest level since 2014-15. Demand for total grains will increase by 2% in 2023-24, world consumption is seen at a record (2.305 billion tonnes).
Soybean production (396 million tonnes) and carryover stocks (62 million tonnes) fell slightly from the August forecast but are projected 8% and 15% higher, respectively, year-on-year. Rice production to reach a record 523 million tonnes, up from an estimated 514 million in 2022-23. Grains and Oilseeds Price Index increased by nearly 1% month-on-month to 265, but it is still 14.5% lower than a year ago at this time.
(Link: WorldGrain.com)
EGYPT SWITCHES WHEAT PURCHASE FROM RUSSIA
GASC agreed to buy 480,000 tonnes of Russian wheat in direct negotiations, Supply Minister Ali El-Mosilhy said earlier this month. That deal was booked at $270 a tonne, including freight, which is lower than the unofficial price floor Russian officials were trying to implement at the time. Russia is forecast to produce 92 million tonnes of wheat and export 46 million tonnes for the 2022-23 marketing year, according to the US Department of Agriculture’s World Agricultural Supply and Demand Estimates report for September. While Russia’s second bumper wheat crop has helped make it the dominant world supplier, the glut also has put downward pressure on prices, prompting government efforts to prop up the market.
(Link: WorldGrain.com)
