World cereal stocks likely to hit record 897mln tonnes: FAO

PHOTO

World cereal stocks will likely increase by 1.5% above their opening levels to a record level of 897 million tonnes, said Food and Agriculture Organisation of the United Nations (FAO) in its forecast for the 2024/25 (July/June) season.

The FAO anticipates world cereal production to hit 2846 million tonnes, virtually on par with the record output realised in 2023/24.

According to the UN entity, the inventories of maize, barley, sorghum and rice are all expected to increase, while those of wheat could decline. The global stocks-to-use ratio will likely remain at 30.9%, it added.

Global maize and wheat outputs are forecast to decline, while those of barley, rice and sorghum are predicted to increase, according to the new Cereal Supply and Demand Brief, stated FAO in its first forecast for the 2024/25 (July/June) season.

However, the recent adverse weather conditions in the Black Sea region will likely result in a downgrade in world wheat production, a possibility not yet reflected in the forecast.

World cereal total utilization in 2024/25 is expected to increase by 0.5% to a new record high of 2 851 million tonnes, led by increased food consumption, especially of rice.

FAO predicts world trade in cereals to decline by 1.3% from the previous year to 481 million tonnes, led by lower trade prospects for maize. International rice trade is forecast to grow robustly.