FAO raised its forecast for world cereal production in 2016 to almost 2526 million tons, which is almost on the level of 2015 and could potentially be the second largest crop in history, according to the Summary of the FAO proposals cereals and cereal demand.

The increase of this indicator was the result of improvements of forecast in wheat production, while in the winter weather conditions were favorable for future crops in the European Union, the Russian Federation and Ukraine. The crop in 2016 is 717 million tons, which is 16 million tonnes less than the record harvest of last year.

New FAO forecast for world production of coarse grains, including barley, corn, millet, oats, rye and sorghum, is 1 of 314 million tons, which is approximately one percent below the harvest in 2015.

FAO has been left unchanged its forecast for world production of rice at 495 million tonnes, which is roughly one percentage point higher than in the previous year, although in a few months will not fully understand the impact of the weather phenomenon El niño.

World cereal utilization in the following season, is expected to grow only by 1.1% due to a reduction in the rate of growth in the use of cereals, especially wheat and barley as feed for livestock. As a result, world cereal stocks is likely to decrease by 3.3%, or 21 million tonnes for the new season.

The reserves, according to forecasts by the FAO, should be reduced to the greatest extent in Brazil, Thailand, India, China, Morocco, the Islamic Republic of Iran, Argentina and South Africa.

The volume of world trade in cereals is expected to fall to 367 million tons due to a sharp decline in imports to China in barley and sorghum, as well as imports in the EU is maize, which more than compensates for the increase in imports of maize in the country affected by drought in southern Africa.