World: Worldwide grain consumption forecast unchanged or even higher this season

Climatic conditions had helped to produce record crops of grains and oilseeds in most parts of the world in 2016/17; but weather conditions turned around during the crop year 2017/18, H. M. Gauger GmbH said in their August report.

Frost and heat waves, extreme droughts and massive rainfalls affected new crops in the northern hemisphere, also winter crops in the southern half of the globe. That explains the smaller crop numbers, 88 mln tonnes less for all grains, 12 mln tonnes less for barley alone, the analysts said.

As consumption will continue unchanged or even increase, year-end stocks will drop sharply as well. Corn and soybean markets remain under the pressure of huge crops and stocks in South America. Wheat and barley supplies will become much tighter, first of all milling and malting qualities, starting a price recovery, which would turn into a real bull market for all grains and soybeans, if crops turned out even lower than forecast today, it is reported.