April 11, 2022

FAO cuts 2022 global wheat production estimates to 784 million tonnes

The United Nations (UN) Food and Agriculture Organisation (FAO) slashed its projection of global wheat production this year to 784 million tonnes, down from 790 million in March 2022 as it took into account the prospect of Ukraine unable to harvest 20% of its winter crop area, Reuters reported.

The new FAO global wheat output estimate remained 1% higher than 2021.

The FAO reduced its estimates of world cereals trade in the 2021/22 marketing year as increased exports from Argentina, India, the European Union and the US were projected to compensate only some of the disruption to Black Sea exports.

Russia and Ukraine are key global wheat, corn, barley and sunflower oil exporters through the Black Sea. Russia's invasion into Ukraine has disrupted the latter's exports, pushing global grain prices to new highs.

The FAO revised the total cereal trade in 2021/22 to 469 million tonnes, down 14.6 million tonnes or 2% below the 2020/21 level.

The FAO's world cereal stocks estimate stocks at the end of 2021/22 was changed to to nearly 851 million tonnes, 15 million tonnes higher due to the possibility of the export disruption resulting in bigger stockpiles in Ukraine and Russia.

-      Reuters