World cereal reserves in 2017/18 MY reach a new record level of 726 million tons, which is 22 million tons (3%) higher than the level of reserves at the beginning of the season and 7 million tons of the forecast for October.
It is noted that the ratio of cereal stocks to their consumption in the world can reach 27.3%, slightly exceeding the indicator of 2016/17 MY and reaching the maximum level since 2001/02 MY.
“According to the forecast, world wheat reserves (at the end of 2018) will reach its historic maximum of 257 million tonnes, which is slightly lower than the November forecast, but still by 13 million tonnes (5%) of the stock level at the beginning of the season. Such a sharp increase in comparison with the level of 2016/17 MY is mainly due to a significant increase in reserves in China and Russia, by far compensated for their decline in North America “, – the statement said.
Analysts expect that the stocks of feed grain (at the end of 2018) will also reach a new record level and amount to about 299 million tons, which is 7 million tons more than forecasted in November. The increase compared to the level of the previous month is associated with a higher than previously expected increase in corn stocks, primarily in the United States.
It is reported that the level of reserves in the world in 2018 increased by 1 million tons to 170.2 million tons, taking into account the expected higher level of carryover stocks in Bangladesh, India and Vietnam.
Previously, it was reported that the world cereal production in 2017/18 MY will be 2.63 billion tons, which is 13.4 million tons more than previously forecast, and 16.8 million tons (0.6%) more than in the level last year.
Consumption of cereal flakes and grassl mixtures is growing in Ukraine – expert
The Ukrainian food market tends to slightly reduce consumption, while stable growth in the category of “cereal flakes and a mixture of grass” prevails.
The executive director of Agricom Group Petr Melnyk reported in the interview with IA “APK-Inform” .
“So, if in 2016 the market storage was about 30.5 thousand tons per year, then in 2017 (including the forecast) – already 32.1 thousand tons. Our company built a development strategy, initially seeing the potential in this niche.
Moreover, the dynamics of the increase in sales storages of “Dobrodiya Foods” flakes is higher than the market one “- P. Melnik clarified.
According to the executive director of Agricom Group, this success was achieved thanks to the knowledge of its customer, system investment in R & D and high-quality communications with the end user and retail partners.