The level of world grain stocks will set a new record
The world cereal supply remains firm, and the level of reserves can rise. World prices for food products rose in June, helped by rising prices for wheat and meat. The FAO Food Price Index, a weighted average indicator that tracks the dynamics of international prices for the five major food product groups, rose 1.4% in June compared to May and 7% compared with the previous year's June figure and averaged 175.2 points. The FAO cereal price index rose 4.2% in the month, as a result of higher prices for high-protein wheat due to deterioration in the sowing conditions in the United States of America. Prices for corn, on the contrary, fell against the backdrop of record harvests in South America. FAO price indices for meat and dairy products also increased, while prices for vegetable oils and sugar declined.
The level of grain stocks could set a new record.
Despite a decline in the supply of high-protein wheat, world cereal stocks are likely to remain at a high level in the coming year, according to the latest data from the FAO Bulletin on Grain Supply and Demand for Grain, also published today. FAO revised its June forecast for world wheat production for 2017, raising it in terms of maize and rice production. World grain production this year is likely to be 2,593 million tons, which is about 0.6% lower than in 2016. It is expected that the level of world wheat stocks will reach a new record level of 704 million tons.
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