ROME, July 5. /TASS/. The UN Food and Agriculture Organization (FAO) has updated its forecast for world cereal production in 2024, setting it at 2,854 million tons, which will be a new all-time high, according to the review of grain supply and demand, released by the organization.
FAO attributed its raised projections to "a better harvest outlook for maize in Argentina and Brazil as well as Turkey and Ukraine, which will offset downgrades to the outlook for Indonesia, Pakistan and several Southern African countries."
"The wheat production forecast has also been raised based on better prospects in Asia, notably Pakistan, which should outpace an expected decline in the Russian Federation due to inclement weather in major wheat producing areas earlier in the season. Global rice production is projected to reach a record 535.1 million tonnes," the organization says.
FAO does not expect any significant changes in world consumption, just as the ratio of world grain reserves to consumption in 2024-2025 and the volume of international grain trade are practically unchanged, the report indicates.
FAO notes stability in global prices for basic food commodities in June after a rise in the previous three months. The FAO Food Price Index, which tracks monthly changes in international prices for a range of food commodities, averaged 120.6 points in June, down 2.1% from a year earlier and 24.8% below its peak in March 2022. The increase in international quotations for vegetable oils, sugar and dairy products in June offset a decline in those for cereals, FAO points out. The organization notes that conflicts and droughts are the main drivers of food shortages.