World: Grain prices continue to rise on falling crop forecasts

Grain prices continued to rise this week as supplies look increasingly tight. Almost every new crop figure released predicts less grain across the world in the current season, UK’s Farmers Weekly reported on November, 8.

It is not just in the UK where the prospects for the 2013 crop are suffering – drilling is also badly delayed in France.

Earlier this week, Russia confirmed a total 2012 grain harvest of 71.7 mln tonnes against 94.2 mln tonnes in 2011.

China’s wheat harvest estimated by US Department of Agriculture at 10 mln tonnes lower than the 108 mln tonnes predicted by Chinese government.

Rain in Australia, while relieving drought, may have come too late to rescue yields and is giving rise to quality concerns, analysts said.

Dry conditions were reported in some key areas of the USA – latest weekly crop condition report from the USDA showed 39% of US wheat crop as good/excellent – lowest ever percentage rating for this time of year.

Winter sowing is almost complete in Russia and Ukraine on a higher expected acreage – with some drought stress in Russia.

09 November, 2012