April 30, 2012

With livestock feeding grains projected to rise at a comparatively faster pace than food or industrial processing, world consumption of grains is seen 1.5% higher than last year, at a record 1,865 million tonnes, the International Grains Council (IGC) said.

Rising meat demand in developing countries is expected to lift feed use, but there may be a slight shift away from wheat to corn, IGC said. Global demand for industrial products such as starch is expected to rise, but the US fuel ethanol sector may shrink, it added.

Carryover stocks at the end of 2012-13 are forecast to increase slightly, to 383 million tonnes (379 million), a second successive annual rise, IGC said in its latest Grain Market Report.

Those in the major exporters are projected to climb to 139 million tonnes (131 million), mainly because of higher US corn inventories, IGC said in the report.

World trade is projected to gain 1%, to 263 million tonnes, due to strengthening milling wheat and feed grains demand. With some global feed demand expected to shift back to corn, trade in that grain is set to increase for a fourth year, including increased purchases by China.

Stiffer competition from corn is expected to restrict world trade in low/medium grade wheat. After a strong rise in 2011-12, trade in barley is projected to show little change.