Global grain glut eases

Successful Farming - - FIRST CUT -

Drought in Aus­tralia, Europe, and Rus­sia will bring the first de­cline in global wheat pro­duc­tion in six years, ac­cord­ing to the In­ter­na­tional Grains Coun­cil in Lon­don. The sharp dropoff of the wheat har­vest would add mo­men­tum to a down­turn in world­wide grain pro­duc­tion that be­gan last year.

At the same time pro­duc­tion is fall­ing, ever-grow­ing de­mand for grain by food­mak­ers, live­stock feed­ers, and in­dus­trial users will eat more rapidly into world sup­plies. IGC fore­casts the “to­tal grains” car­ry­over to fall by a star­tling 11% dur­ing 2018/2019. Even so, the world would still have a three-month sup­ply in stor­age at that point.

Grain in­ven­to­ries of the ma­jor ex­porters – Ar­gentina, Aus­tralia, Canada, EU, Kaza­khstan, Rus­sia, and the U.S. – will fall to their low­est level in four years dur­ing 2018/2019, says IGC.

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