FAO estimate May 2023: Global grain quantities 2022/23 lower, but stocks stable In its most recent May 2023 issue, the World Food and Agriculture Organization of the United Nations (FAO) made some corrections to the previous month's values of the world grain supply, but the overall result has changed only insignificantly. Compared to the previous year, the production and consumption quantities are lower, the ending stocks remain at a comparatively favorable level at 29.8% to consumption (previous year 30.8%). In the case of wheat , the FAO estimates an improvement in the supply situation because the increase in production is not fully offset by the increase in consumption. The high Russian and Australian harvests are having an effect here, while demand is somewhat weaker due to price factors. In the case of rice, the market conditions will only change insignificantly with a good average supply situation. In the feed grain sector , the situation is reversed. Less generation meets stable demand, resulting in a stock reduction of around 4%.The production prospects for the 2023 harvest are limited to wheat production, which is estimated to be essentially unchanged compared to the previous year. In the EU, a balance is developing between the drought-affected southern countries and comparatively favorable conditions in the northern growing areas. A drop in production is expected for the drought-affected North African countries. An average harvest is expected in Russia. The forecasts for the Ukraine and India are still critical. Maize production in the southern hemisphere is limited by the drought in Argentina, but more than offset by the record harvest in Brazil. Harvest estimates are very muted for the time being given the uncertainties associated with weather fluctuations aggravated by climate change and the war in Ukraine.
