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At end 2012, total grains consumption falls, says IGC

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IGC-201212-graphsFor its final Grain Market Report for 2012, the International Grains Council (IGC) has revised slightly its grains supply and demand forecasts for 2012-13 “as harvests have been completed in some countries, but the outlook is largely unchanged”.

Total grains production is expected to fall by 5% year-on-year, said the Report for 2012 November, “and despite a contraction in consumption for the first time in 14 years, stocks are set to fall by 45mt to 324mt”.

The IGC Grains and Oilseeds Index is down by 2% from a month earlier but as the Report has said “this masks divergent underlying trends… the soyabean and rice sub-indices have declined by 7% and 1% respectively”. [You can get the Grain Market Report for 2012 November here (pdf), and the data tables for the crops in this zip file.]

In the wheat market, the Report has said that speculation about dwindling Black Sea supplies and the prospect of export curbs in Ukraine have dominated, yet flows from the region have defied expectations.

“This has limited price upside from weather-related worries for 2012-13 crops currently being harvested in the southern hemisphere, and conditions for the recently planted winter wheat in the north,” said the Report. Given high prices, the total wheat harvested area for 2013-14 is set to increase by 2%, although the IGC has warned that conditions for parts of the US crop are a concern.

Maize prices outperformed other grains with improved US export hopes and less than favourable planting conditions for South American crops which are critical given tight supplies. In contrast, rice prices have been relatively stable, but Asian markets were pressured by new crop supplies and mostly limited activity.

Written by makanaka

December 23, 2012 at 17:53

3 Responses

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  1. […] For its final Grain Market Report for 2012, the International Grains Council (IGC) has revised slightly its grains supply and demand forecasts for 2012-13 “as harvests have been completed in … (*Capitalism – Today .  […]

  2. […] For its final Grain Market Report for 2012, the International Grains Council (IGC) has revised slightly its grains supply and demand forecasts for 2012-13 “as harvests have been completed in … (*Capitalism – Today .  […]

  3. […] For its final Grain Market Report for 2012, the International Grains Council (IGC) has revised slightly its grains supply and demand forecasts for 2012-13 “as harvests have been completed in …  […]


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