FAO: 12% more wheat expected in EU, but China will reduce demand

The United Nations' Food and Agriculture Organization (FAO) has updated its 2024 cereal production forecast, slightly reducing it by 0.3% to 2,849 million tonnes due to adjustments in wheat yields in Australia and Kazakhstan. The organization also increased its global rice production forecast for 2024-25 by 1.6% to 543.3 million tonnes. The FAO expects global wheat production to rise to 795 million tonnes in 2025, with Europe witnessing a 12% growth. However, maize harvests are predicted to have mixed results, with increases in Brazil and South Africa but decreases in Argentina. The FAO also anticipates a rise in global cereal use in 2024-25, reaching 2,868 million tonnes, primarily driven by a record high in rice use. However, global cereal stocks are projected to decrease by 1.5% to 873.3 million tonnes by the end of 2025, and global trade is expected to drop by over 6% due to reduced demand from China.

The Food and Agriculture Organization of the United Nations (FAO) revised its 2024 global cereal production forecast by a minimal 0.3% in March due to changes in reported wheat yields in Australia and Kazakhstan, the FAO’s monthly cereal supply and demand report said. This brings the total 2024 harvest estimate to 2,849 million tonnes. The FAO’s 2024/25 global rice production forecast has also been revised up to 543.3 million tonnes, implying an annual increase of 1.6%, largely due to an increase in the area under the crop. Global wheat production is expected to reach 795 million tonnes in 2025, the FAO forecast. Wheat production in the European Union is expected to grow by 12%. Argentina, Egypt and India are also likely to boast more wheat, while Australia, the United States and parts of East Asia are expected to see less. Maize harvests in the southern hemisphere are expected to vary, with increases forecast for Brazil and South Africa but declines in Argentina. FAO’s new ...