Global Wheat and Rice Harvests to set new record in 2016
Global rice production is predicted to expand for the first time in three years, increasing 1.3 percent to an all-time high of 497.8 million tonnes, buoyed by abundant monsoon rains over Asia and sizable increases in Africa. Coarse grain output is seen rising 1.8 percent on the year, buoyed by record crops in the U.S., Argentina and India.
Cereal prices are drifting lower on the backs of the expected hefty supply. Wheat and maize futures on the Chicago Board of Trade have both dropped more than 16 percent since the start of the year, while quoted rice prices are at their lowest level since early 2008.
Production of cassava, a dietary mainstay in Africa where per capita consumption is above 100 kilograms annually, is also projected to grow 2.6% this year to 288 million tonnes. However, China's shift to drawing down its maize stockpile for domestic industry and feed has curbed international prices and trade flows for cassava.
Soybeans and other oilcrops could reach an all-time production high this year, thanks to record US yields, although demand is expected to grow even faster. In the livestock sector, dairy markets are also expected to return to general balance in 2016 after a long period of excess supply, but tightening milk availabilities in the EU triggered the largest monthly rise in dairy prices in many years.
Photo: Rice Harvest (Credits: Dani Bradford/IFPRI/Flickr CC BY-NC-ND 2.0) https://adalidda.net/posts/yLbiZQb2GS2iKJLQ7/global-wheat-and-rice-harvests-to-set-new-record-in-2016