The global grain utilization in 2017/18 should reach 2 612 MT

The FAO forecast of global grain utilization has been raised by 4.6 million tons (0.2 percent) since February to 2 612 million tons; 39.3 million tons (1.5%) higher than in 2016/17. The month-on-month increase largely stems from upward revisions to the forecasts of corn and wheat utilization.

The global wheat utilization in 2017/18 is set to reach an all-time high level of 736.4 million tons, up 0.4% (2.8 million tons) from the previous month and now 0.3% (2.5 million tons) above the 2016/17 estimated level. The increase from last month mostly reflects higher forecasts for industrial use, whereas the expansion from 2016/17 is mainly attributed to a 1.2% projected growth in the food use of wheat. 

The forecast for total utilization of coarse grains in 2017/18 has been raised from last month by 2.5 million tons to 1 373 million tons, mostly because of upward revisions to feed use of corn in the EU and several Asian countries.

Driven by larger supplies and lower prices, total feed use of corn in 2017/18 now stands at 601 million tons, 2.6 million tons (0.4%) more than projected in February and 18.2 million tons (3.1%) higher than in 2016/17.

Reference: the global wheat production in 2018 may reach 750 million tons, which is 7 million tons less than the record level of 2017, but 6 million tons more than it was expected in March.