Fao Hikes 2015 Cereal Production Outlook By 15 Million Tonnes

Un Food and Agricultural Organisation (FAO) increased its 2015 global cereal production outlook by 15 million tonnes in May, as its cereal utilisation estimation rises by 1.2 percent, according to the data in its latest Cereal Supply and Demand Brief, released on Thursday.

"The outlook for world cereal production in 2015 has improved since the previous report in May, on expectations of larger wheat, coarse grains and rice harvests" FAO said.

FAO's latest forecast for global cereal production in 2015 rose to 2.524 billion tonnes, still 1 percent, or 25.6 million tonnes, lower than the record in 2014.

Global wheat production in 2015 is currently forecast at 723 million tonnes, up 4 million tonnes from May but down 0.8 percent or 6 million tonnes from the previous year's record.

"This month's upward revision mostly reflects bigger anticipated harvests in Africa and North America" FAO said, while annual contraction in world wheat production would be mainly the result of declines in the EU, India and the Russian Federation, which combined account for approximately 40 percent of the global wheat output.

The forecast for world coarse grains production in 2015 has been raised more significantly, by 10 million tonnes to 1.3 billion tonnes, mainly on improved prospects for maize, in China and Mexico and sorghum in the United States, FAO said. "Despite this month's increase, world coarse grain production would remain 2 percent or 26 million tonnes smaller than in 2014, largely on account of lower projected maize and barley outputs."

The forecast for lobal rice production in 2015 has also been upgraded since last month, by 1.3 percent or 6.3 million tonnes compared to last year, underpinned by large increases in China, India,  Philippines, Sri Lanka and Thailand.

"World cereal utilization in 2015/16 is projected at 2 525 million tonnes, up slightly from the previous report and now 1.2 percent or nearly 30 million tonnes above the latest estimate for 2014/15" FAO added.

Total feed utilization of cereals is forecast at 894 million tonnes, 1.5 percent or 13 million tonnes above the 2014/15 estimate, compared to almost 5 percent growth between 2013/14 and 2014/15.

Total food consumption of cereals is likely to increase by 1.3 percent or 14 million tonnes, keeping annual per capita consumption level of cereals steady at slightly above 152 kg, with wheat at around 67 kg and rice at just over 57 kg.

(Graph) - Istanbul