Global grain glut eases
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.