FAO adjusts upward world grain utilization forecast for 2021/22 backed by wheat and corn
FAO’s world total cereal utilization forecast in 2021/22 is nearly unchanged from October and still heading for a 1.7% increase from the 2020/21 estimated level. FAO's estimate is at 2 812 mln t.
Total wheat utilization in 2021/22 is expected to grow by 2.2%, reaching 779 mln t. Global food consumption of wheat is seen rising in tandem with population growth, resulting in a relatively stable per capita level. Despite high wheat prices, feed use of wheat is anticipated to register another strong growth in 2021/22, especially in the European Union, but also in China, India, the United Kingdom of Great Britain and Northern Ireland and the United States of America.
Higher feed and industrial uses of corn account for the bulk of this month’s 1.2-million-tonne upward revision and the foreseen 1.6% year-on-year growth in total coarse grains utilization in 2021/22, now pegged at 1 514 mln t. A forecast 2.5% year-on-year rise in corn utilization is supported by anticipation of continued robust feed demand in Brazil and China, greater use of maize for feed in Canada, and higher maize-based ethanol production in Brazil and the United States of America.
By contrast, reduced production is expected to curb feed and industrial uses of barley.
Previously reported that the world prices for all staple grains continued their 4-month increase in October.
As a reminder, wheat export from Ukraine& in 2021/22 was limited to 25.3 mln t. The Memorandum of Understanding was signed by the Agrarian Ministry and grain market participants.