UN wheat outlook is positive for feed manufacturers

Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies. The UN's food agency, the Food and Agriculture Organization (FAO), has put forward a "favourable outlook" for global wheat production in 2011, which should lead to lower prices for the commodity.

Higher sowings and more benign weather is expected to help raise supply levels of wheat, as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda. The FAO statement suggested that total global production of wheat will increase by 3.4 percent to 676 million tonnes in 2011. "Plantings have increased, or are expected to increase, in many countries in response to strong prices and yield recoveries are expected in areas that were affected by drought in 2010," Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.