August 7, 2013

 

 

For 2013, Iran's wheat production may total about 14.5 million tonnes, up about 5% from the 13.8 million tonnes collected a year earlier.

 

This was according to the United Nations' Food & Agriculture Organization (FAO).

 

Total grain production may be 21.85 million tonnes, up 3.4% from a year earlier, including 3.2 million tonnes of barley and 2.4 million tonnes of rice, it added.

 

Iran's wheat imports may drop by 67% this season amid ample stockpiles in the country and increasing production. Wheat purchases may be about two million tonnes, compared with 6.1 million tonnes a year earlier, the FAO said.

 

Total imports of grain, including wheat, corn and rice, may "remain relatively high" at 9.4 million tonnes, according to the report. Outlook for lower imports is "mainly due to higher carryover stocks following large purchases in 2012."

 

Still, Iran has made "large purchases" of grain in international markets since the marketing year began April 1, including 800,000 tonnes of wheat from Russia and the Baltic Sea region, the FAO said, citing reports from traders.

 

"Iran's state grain buyer continues to build its strategic stocks in light of concerns about domestic food security," the FAO said.

 

The Central Bank of Iran allocated IRR70 trillion, equal to about US$2.82 billion, for domestic wheat purchases in June, the FAO said. The country had purchased about three million tonnes of domestic wheat as of the end of this month, according to the report.

 

FAO is forecasting Iran's wheat imports will fall to 1.5 million tonnes in 2013-14 from an estimated 4.7 million tonnes in the year through June, said Abdolreza Abbassian, an economist at the UN's Food & Agriculture Organization in June. The estimate for 2012-13 may be raised "a bit" on account of recent large purchases, he said.

 

"It's not been a particularly bad year in terms of production," Abbassian said in an interview at an industry conference in London. "Production is anywhere between 13 million and 15 million tonnes. They're harvesting now."

 

Iran's wheat harvest has been within that range for the past two seasons, according to the FAO economist. Iran has invested in grain infrastructure and has sufficient storage capacity, with wheat stocks that may be as high as five million tonnes, Abbassian said.