Grain prices in a period of weakness - FAO and EU-COM correct previous estimates The FAO's latest estimate of 6 September 2019 slightly corrected its July 19 forecast on world grain supply . The wheat harvest was slightly reduced, the wheat consumption increased slightly and the final stocks were estimated to be slightly lower. Compared to the previous year , the supply situation at the global level remains largely unchanged. In the case of the rest of the grain , the FAO has revised its pessimistic July crop estimates back up under the impact of adverse US conditions on corn sowing. With an even higher consumption estimate, the final stocks compared to the previous year are noticeably reduced . On closer inspection, however, it is noticeable that the final portfolio developments in the major exporting countries are significantly reduced.This becomes particularly visible in the wheat market, where the supply numbers fall from 20.8 to 16.4% final inventory for consumption. This indicates that the export reserves of the most important supplier countries for any further production losses are narrower. A crop failure of the order of 10% is to be expected according to recent reports from the Department of Agriculture in Australia . For the EU-28, the EU Commission (EU Commission) has its crop estimate in the new market report back from 310 to 313 million tonnes of raw material or 311.1 million tonnes consumption capable cereal revised upwards. Crucial were the larger failed wheat harvests in France and the record-high yield expectations for maize in the south-eastern EU Member States . According to the current situation, the grain prices, difficult to open up a price increase potential.Nevertheless, there is a reasonable prospect of later price increases, albeit from today's perspective, only to a modest extent. However, significant risks still need to be overcome, such as the fear of early frosts in the case of very delayed maize sowing in the USA.
