Global cereals utilization projected 1.7% up in 2021/22
Despite this month’s 2.0-million-tonne downward revision, world cereal utilization in 2021/22 is forecast to rise by 1.7% above the 2020/21 level, reaching 2 810 mln t, FAO report reads.
The wheat utilization forecast has been lowered by 1.8 mln t since November, to 779 mln t, mostly reflecting lower feed use expectations in the European Union where price movements are seen displacing wheat for greater use of other feed grains, including maize. Nonetheless, global wheat utilization is still expected to increase by 2.0%t from the 2020/21 level on robust food consumption and feed demand.
At 1 514 mln t, the forecast for total utilization of coarse grains is nearly unchanged from last month with higher-than-previously-expected industrial use of maize, largely due to a faster rise in ethanol production in the United States of America, offsetting lower feed use estimates for barley owing to tighter supplies and high prices.
World total utilization of coarse grains in 2021/22 is forecast to expand by 1.6% from the 2020/21 level, supported by higher use of maize for feed, especially in Brazil, China and the United States of America, and for ethanol production in Brazil and the United States of America, as economic activity continues to pick up and oil prices remain firm.
As of 25 November, the harvesting campaign in Ukraine was 95% completed. 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.