Large global grain supplies expected

Published: 02/08/2023

The United States Department of Agriculture (USDA) recently released its monthly flagship report, World Agricultural Supply and Demand Estimates. The report’s focus has shifted from the 2022/23 season to the 2023/24 season.
The 2023/24 global wheat production is forecast at 797 million tons, up 1% from the previous season. The larger harvest is anticipated in the European Union (EU) region, the US, Canada, China, India and Turkey. As a result of the expected large harvest, the 2023/24 season’s global maize stocks could increase by 1% year-on-year to 270 million tons. Moreover, the USDA forecasts 2023/24 global maize production at 1,2 billion tons, up 6% from the previous season.
The countries underpinning this improvement in production are the US, Brazil, Argentina, China and the EU region. Regarding South America, the El Niño weather event will present much-needed change of a prolonged four years of below-average rain during a La Niña event. The ending stocks could also increase by 6% to 314 million tons in the 2023/24 season because of the expected robust harvest. – Wandile Sihlobo, Agbiz