Cereal World Production Up But Price Decline Anticipated
October 7, 2011| |
World cereal production forecast of 2310 million tonnes this season will be 3 million tonnes more than last month's forecast. Although production increased, there is perceived uncertainty on its impact on world food security due to the slowdown in the global economic recovery and increased risks of recession. This was reported in the quarterly Crop Prospects and Food Situation released by the Food and Agriculture Organization of the United Nations (FAO).
The following global production increases were noted: 4.6% in wheat, 3% in rice and 2.1% for coarse grains. However, anticipated recovery in global cereal production combined with lower than earlier anticipated demand, including for ethanol, are contributing to a decline in prices.
The FAO press release is at http://www.fao.org/news/story/en/item/92544/icode/.
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