Grain production in 2022/23 brings concerns arising from production costs

Senior Economist at the International Grains Council (IGC) Darren Cooper says there are concerns about the volume of world grain production in 2022/23, the APK-Inform consultancy writes.

"Despite the fact that winter wheat area for the 2022 crop is expected to be close to last year's level, we have concerns about the bulk yield volumes in view of high production costs, in particular, the significant increase in energy and fertilizers costs. The same factor may have a negative impact on corn sowing in the spring of 2022," he assumes.

According to him, rapeseed perspectives are more optimistic. Darren Cooper marks that the high prices for rapeseed on the world market, which were formed on the severe shortage of Canadian canola, will stimulate producers in the Northern Hemisphere countries.

Previously reported that in the first three months of 2021/22, rapeseed processing in Ukraine was 58% higher YoY.

In 2021, rapeseed production in Ukraine totalled 2.9 mln t on 1.01 mln ha. The average yield stood at 2.86 t/ha. For the country's next crop, rapeseed was 99% planted as of Nov. 8.

Read more: Top 10 rapeseed processors in Ukraine in July-August 2021/22

In its November report, the USDA projects wheat production in Ukraine in 2021/22 at 33 mln t, corn at 38 mln t.

NASA's recent simulations suggest that corn and wheat cultivation may change globally by 2030.

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