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Global production of wheat likely to be lower in 2012-13: IGC

29 May 2012 Evaluate

The world production of wheat for 2012-13 has been lowered to 671 million tonnes (mt) by the International Grains Council (IGC). This is the second revision after the one in April which had pegged production at 676 mt. The fall in production is expected due to adverse weather conditions in Europe, Russia and Morocco. Production of wheat in 2011-12 stood at 695 mt.

The world wheat consumption is also expected to fall to 681 mt in 2012-13 from 688 mt last year. China is the largest producer of wheat followed by India. In 2011-12, China produced 100 mt of wheat and India’s production was estimated at 90.23 mt.

Given the fall in production, it is also expected that global trade of wheat will also see a plunge of 7.4 mt to 136 mt, from record 143 mt in 2011-12, as surplus wheat is expected to be less in Argentina and Europe. The US on the other hand is expected to benefit from the lack of competition and might see a boost in sales. Global maize production, on the other hand is estimated to see a rise of 5% to a record 913 mt in 2012-13 as compared to 866 mt last year.

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