The International Grains Council's January report forecasts a record-breaking total grains outturn of 2,307 million tons for 2023/24, driven by a robust rebound in corn production. While global consumption is on the rise, shrinking inventories and trade adjustments mark key challenges for the animal feed industry.
In a significant turn, the London-based IGC projects a historic 2% year-on-year increase in global total grains production, reaching an unprecedented 2,307 million tons. Primarily led by a solid resurgence in corn production, this surge prompts a 2% rise in global grain consumption, hitting 2,314 million tons, with feed, food, and industrial demand reaching new peaks. However, the optimism is tempered by the seventh successive drawdown in global inventories, expected to contract to 590 million tons.
Wheat faces a 2% production decline, compelling a 5% reduction in trade, while increased demand pushes consumption to a new high of 804 million tons. Looking ahead to 2024/25, wheat supply and demand projections suggest a larger harvest, potentially drawing down stocks to a six-season low.
The soybean sector anticipates a peak production of 392 million tons, but trade dynamics shift, signaling a retreat in import demand by almost 4 million tons to 168 million, influenced by reduced purchases from China and Argentina.