Feed industry to expect low grain output this year

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It is going to be another tough year for feedmillers with the forecasts for low output of both oilseed and coarse grains in 2021/22.

According to the International Grains Council (IGC) production in 2021/22 has been lowered by 1mt to 2286mt, since its November report, due to drought conditions in South America. This is despite positive yields coming in from Australia and Argentina.

The IGC also estimates consumption to drop because of higher ensuing prices. The consumption estimate thus is down by 3mt to 2287mt.

The Council however estimates 2022/23 to bring in better fortunes with a tentative prediction of a “fourth successive increase in global production, to a new peak.”

South American weather will also impact global soybean output in 2021/22, drastically slashing it by 12mt to 368mt. According to the USDA GAIN report, the loss offsets made in the US soybean crop. Global production of protein meal is also forecast to be down, along with crush, with lower soybean meal exports expected from Argentina, US and Paraguay.

For a related story, please see:
Clash between retail prices and production cost
WMP partners with farmer co-op for corn farming, supply
Sri Lanka turns to corn imports as local harvests fail

Editor, Asian Feed Magazine and FeedWatch, Colombo, Sri Lanka. The Russian-Ukraine war has intense implications on the world grain markets and Zahrah has her fingers on the pulse with articles like, ‘Wheat, corn markets shudder over Russia-Ukraine conflict’.