Global grain utilization in 2018/19 heading towards an increase

FAO’s first forecast of global grain utilization in 2018/19 suggests an increase of around 16 mln tons (0.6 percent) from 2017/18, to a new high of 2 626 mln tons.

In addition to an expected rise in food consumption, large supplies and relatively low prices of grains are also anticipated to boost demand for their feed use, especially in Brazil, China, Mexico, the Russian Federation and the United States.

Global wheat utilization in 2018/19 is set to increase for the third consecutive season, reaching 743 mln tons, up 0.8 percent from 2017/18. While total food consumption of wheat is forecast to keep pace with world population growth, its feed use may decline slightly, owing primarily to large supplies of more competitively priced coarse grains.

Total utilization of coarse grains is projected at 1 373.5 mln tons, up marginally (0.4 percent) from 2017/18.

World feed use of coarse grains could increase by as much as 2 percent to 783 mln tons in the new season, underpinned by a strong rise in the feed use of corn. Total feed use of corn is projected to exceed the current season’s high level by 2.8 percent to reach an all-time high of 615 mln tons, with the biggest year-on-year expansions envisaged in China and South America.