F.O. Licht's Grains Production Update: Australia hike adds to improved outlookThis article was originally published in The Public Ledger
The outlook for the 2013/14 (Jul/Jun; except where stated) grains supplies points to an improved situation when compared with last month. There were some upward revisions for supplies in Australia, Brazil and Canada. The supply outlook for 2013/14 is now for a 7% y/y growth against 6% one month ago. Regarding coming months, there may be some support for prices from lower than expected corn supplies in Argentina. When considering the worldwide inventory levels for the key cereals, there are no signs of a glut of grains on the global market, as it was the case after the 2008 and 2009 harvests, despite the positive harvest outlook and the higher stocks with main exporters.