FAO sees stable market for cereals with sufficient inventory
The Food and Agriculture Organization expects the market for wheat, maize, and rice to continue to be stable for 2017/18 as inventory is enough to fill up the demand should there be any unexpected production shortfalls.
In the April edition of the Agricultural Market Information System, the FAO said: “the supply and demand outlook for wheat, maize and rice points to continued stability in world markets. Even in the event of any unexpected production shortfalls, carryover stocks are large enough to provide a sufficient buffer in the new season.”
The FAO expects milled rice production to amount to 504 million tons. While utilization is forecast at 506 million tons, the difference can easily made up for by the 171 million tons of available stock.
Maize production is seen at 1.051 billion tons, with utilization seen at 1.055 billion tons. Stocks are placed at 214 million tons, enough to make up for the higher utilization.
Wheat production this year is expected to decline by 2.7 percent, because of lower output from several major producing countries, specifically the United States. However, utilization is headed for a marginal decrease as cheaper grains take the place of wheat in feeds.