FAO expects strong cereal production in 2013

The United Nation's Food and Agriculture Organization (FAO) on Thursday said in its report that strong growth is expected for global wheat, coarse grains and rice production in 2013. According to early forecasts of the FAO's monthly Cereals Supply and Demand Brief, assuming more normal weather conditions than in 2012, global wheat production in 2013 is expected to reach 695 million tonnes, 5.4 percent up from last year's harvest and just some 6 million tonnes short of the 2011 record level. Also, coarse grains production is expected to set a new record at 1,266 million tonnes, 9.3 percent up on the previous high of 1,167 million tonnes registered in 2011. Maize is forecast to account for about 960 million tonnes, some 10 percent up from 2012. The bulk of the increase is expected in the United States, the world's largest producer, where maize plantings are forecast to reach their highest level since 1936. The FAO foresees rice production in the forthcoming 2013 season to rise to 497.7 million tonnes, 16 million tonnes more than in 2012, with particularly large increases expected in India and Indonesia. Despite the expected production increases, the FAO said, world cereal utilization is expected to stagnate in 2012/2013, constrained by rising grain prices and faltering ethanol demand. World cereal stocks by the close of seasons in 2013 are forecast at 505 million tonnes, up 1 percent, or 5 million tonnes from the previous forecast, but some 3 percent, or 16 million tonnes below their opening levels. The world cereal trade, involving all major cereals, in 2012/13 is expected to fall sharply to 304.4 million tonnes, which would be almost 1 million tonnes larger than forecast last month, but still represents a decline of about 4 percent, or 13 million tonnes from 2011/12.