World: Despite lowered forecast of world grain crop supplies remain more than comfortable

The forecast of the world grain crop has been lowered by 13 mln tonnes since last month, but supplies remain more than comfortable, H. M. Gauger GmbH said in their latest report published earlier in August.

While sales of meat and bakery products, and malt and beer are clearly affected by the Covid-19 pandemic, the flow of all major grains and oilseeds will most likely continue at rather unchanged levels, the analysts believe.

Most crops are fair to good in the northern hemisphere, particularly in Canada and the U.S. After detrimental weather and smaller plantings in autumn, France will harvest 8 mln and the U.K. 7 mln tonnes less wheat than in 2019. North Africa’s drought has reduced the Algerian and Moroccan crops. Fears for the Russian crop have proven exaggerated, its wheat crop may even surpass 80 mln tonnes. Nevertheless price levels of wheat and barley improved by USD 10,- to 15,- per ton since last month, because of farmers’ abstention from markets and very active grain procurement, e.g. by China, Mexico, North Africa.

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