IGC estimates global grain harvest essentially unchanged - ending stocks decline In its September 2019 issue , the International Grains Council expects world grain production to remain unchanged compared to the previous month's estimate . Compared to the previous year , global grain production is expected to be 0.7% higher in 2019/20. However, this is offset by an increase in consumption of 1.2%. The result is a reduction in inventories of 1.2% to approx. 600 million t. The price-influencing supply number is reduced from just under 30 to 27.3 % final inventory for consumption. This describes an average supply situation. Since in China approx. 52% of the world's grain reserves are, but these are not available for export, it is expedient to keep the country of the middle out of the utility bill. Excluding China , the supply ratio is calculated to fall from the previous 18.3 to the current 16.5% .This is still in the multi-year midfield, even if the supply volumes are considerably smaller. The global wheat supply estimates the IGC also unchanged from the previous month 's issue . Compared with the previous year , volumes have increased by approx. 4% . This creates a slight inventory build-up on the world level, but not among the leading exporting countries. The supply situation in the wheat sector can be described as above average. However, there were changes in the individual wheat growing areas . The Australian and Kazakh crops were cut by 2 million tonnes each, while the EU harvest is estimated to be 2 million tonnes and the Indian one 1 million tonnes higher. In the EU, France in particular has made a record crop. In all cases, the changes almost fully affect the export. The global corn crop has reduced the IGC to less than 1,100 milliont withdrawn, but left the consumption unchanged. Compared to the previous year , however, the supply situation is much weaker by 40 million tonnes due to the reduction in inventories. The main reason is the 15 million t lower US corn crop , as a result of weather-related late sowing in May. By contrast, South American corn crops were rated higher. The global supply situation in the corn sector, the supply number with 12% final consumption (China) is considerably below the multi-year average . For the EU , the IGC still estimates a good average corn crop of 66.5 million tonnes , despite the noticeable shortfall in the northern dry belt. The record-breaking income in the southeast should provide the balance. Corn and wheat prices on the leading stock exchanges are relatively stable at a slightly higher level than in the previous weeks.In the beginning, life comes into the trading business, because the mills want / need to cover initial connection needs.
