World grain prices grow
The UN Food and Agriculture Organization (FAO) has published forecasts of grain production in 2013. Grain production is expected to drop by 2.7% to 2284 million tons. Wheat production will drop by 5.5%, forage by 2.5%, ARKA reports.
Grain reserves will total 497.4 million tons at the end of the agricultural season of 2012, which is less than the volume in early 2012 by 4.8%.
World grain supply will total 2806.6 million tons (dropping by 0.2, compared with October forecasts) at a demand of 2313.9 million tons. Demand for grain will exceed supply by 29.9 million tons.
Ratio of grain reserves to consumption will drop from 22.6% in 2012 to 20.6% in 2013. It is comparable with the lowest recorded indicator of 2007/2008 (19.2%).
Grain exports and increasing prices should reduce grain trade volumes by 6.9% in 2012/2013.