Global Grain Stocks Expected to Hit Five-Year Low At End of 2020/21 MY
Global grain stocks are expected to sink to 609 million tons by the end of the 2020/21 marketing year, reflecting the lowest levels in five years, according to the most recent Grain Market Report released by the International Grains Council (IGC) on April 29.
The report outlines that even though there was an increase in total grains (wheat and coarse grains) production of 36 million tons in the previous marketing year, it was offset by an increase of 44 million tons in consumption, resulting in stocks that are 8 million tons lower than a year before.
Additionally, maize experienced a draw-down leaving stocks at their lowest in eight years.
Despite an increase in maize production from 1.12 million tons to 1.14 million tons, maize stocks are forecast to decrease by 26 million tons.
Given the broad, strong gains for grains and oilseeds, the IGC Grains and Oilseeds Index (GOI), which measures average prices, jumped by 8 percent month-on-month, and by 54 percent year-on-year to its highest point since 2013.