Cereal production increases in 2008

Sudan News.Net
Friday 18th July, 2008

An estimated 2.8 percent increase in world cereal production in 2008 over the past year should contribute to some improvement in the global supply and demand situation, a UN agency said Friday.

A report by the Rome-based Food and Agriculture Organization said that 2008 is set for a record cereal yield of 2.18 billion tonnes.

Most of the increase is in wheat following significant expansion in plantings in all regions while coarse grains output is expected around the bumper level of last year, but lower than earlier anticipated owing to severe floods in the US, the world's largest producer and exporter.

Rice is tentatively forecast to increase slightly from last year's good level.

Despite the anticipated increase in world output, cereal markets will remain tight in 2008-09, according to FAO which said it expected total cereal supply to barely exceed the anticipated utilization.

World cereal reserves will recover only marginally from the current estimated 30-year low, the FAO said.

International cereal prices remain at high levels with tight maize supply in the United States underpinning prices of major cereals.

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