Un Food and Agriculture Organization raises global grain production data

According to the United Nations Food and Agriculture Organization (FAO), global grain production is expected to reach 2.234 billion tons in 2009, only two percentage points lower than the previous year's record level and nearly 26 million tons higher than the previous forecast.

In its latest report on food security and crop prospects, FAO said the increase in grain production data was mainly due to higher-than-expected wheat production data in Asia, Europe and the United States.

The increase in wheat and coarse grain production data offset the decline in rice production data. Since July, abnormal weather in some major Asian countries, coupled with the impact of natural disasters, has worsened the outlook for rice production.

FAO said a clear outlook for grain production, coupled with relatively good inventories carried over from the previous year, had allayed concerns about overall supply, at least this year.

FAO currently expects wheat production this year to be 678 million tons, up from an earlier forecast of 655.2 million tons. The coarse grain production data increased by 15 million tons to 1.108 billion tons because of the increase in production data in the United States.

FAO expects rice production to reach 672 million tons, down 2.3 per cent from the previous year's record of 688 million tons. FAO pointed out that poor monsoon rains in India, followed by floods, seriously affected rice. The Philippines was also severely damaged by the typhoon.

Overall, the forecast confirms that grain production will hit the second-highest level in history this year.

The recovery of global grain supplies has helped to suppress prices, and farmers in Europe and the United States are likely to reduce wheat acreage next year.

FAO said global grain use rose more in 2009 than previously expected, in part because of falling prices. But even so, global inventories will rise slightly to their highest level in eight years.

According to the latest report released by the International Grain Council (IGC), the global wheat production (including Durham) is expected to be 666.8 million tons in 2009. The global grain output in 2009 was 1.76 billion tons.