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Meanwhile, agri demand estimates for the 2012-13 marketing year have moved lower for corn and soybeans but are higher for wheat. High prices almost certainly explain some of the weakness in agricultural commodity dema..

28 Nov 2013

NEW DELHI (Commodity Online): Global food grain production in the year 2013-14 is expected to be higher, healthy and is likely to put pressure on commodity futures in the international market. Output of corn, rice and others is expected to go up in the current year, experts say.

World cereal production (including rice in milled equivalent) is expected to increase by 8% in 2013, to 2498 mn tons. This forecast is almost 10 mn tonnes higher than forecast in October, mostly reflecting upward adjustments to production estimates in Canada, China, EU, the United States and Ukraine, said Food and Agriculture Organization in its latest monthly FAO Cereal Supply and Demand Brief.

World rice output in 2013 is projected to grow modestly. The sharp rise in 2013 cereal output mostly stems from a recovery of maize crops in the United States and of wheat crops in CIS countries, the FAO noted.

Meanwhile, agri demand estimates for the 2012-13 marketing year have moved lower for corn and soybeans but are higher for wheat. High prices almost certainly explain some of the weakness in agricultural commodity demand this year. However, the corollary of that is the bigger harvests currently expected for the coming marketing year suggest lower prices and a big rebound in demand ahead, noted London based Barclays in its recent market report.

Global 2013-14 coarse grain production forecast has been raised with a 6.2-mn tons increase in corn production, the United States Department of Agriculture said in its WASDE November report.

World rice production is lowered 3.6 mn tons from the September projection to 473.2 mn, still a record, and 4.2 mn larger than the preceding year.

However, global 2013-14 wheat supplies are lowered 0.8 mn tons as a decline in global output more than offsets higher beginning stocks, mostly in the European Union, USDA pointed.

India Food Grains
In India, higher than expected monsoon rain fall activities are expected raise India's total food grain production. However, crop damage due to excess rain fall activities have spoiled commodity stocks like corn.

For the time being, as a result of favourable weather conditions, the area sown for 2013-14 rabi crop significantly gone up according to the government estimates.

India total area sown for Rabi crop, during the week ending 22 November 2013 stands at 314.24lakh hectares (lh), higher when compared to the 294.31 lh recorded during the same period last year, according to the data released by the Ministry of Agriculture on Friday. Rabi Rice is sown on area of 0.73 lh (0.64 lh during the same period last year), followed by Wheat 127.47 lh (101.64 lh), Pulses 85.95 lh (85.10 lh), Coarse and Cereals 36.20 lh (41.70 lh), Oil Seeds 62.42 lh (61.53 lh) and Suagrcane 1.47 lh (3.70 lh).

According to the First Advance Estimate 2013-14, India’s food grain production for the crop year 2013-14 is projected at 129.32 mn tons, an increase of 7.25 percent over the average annual production average of 120.57 mn tons.


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