Feed industry uses a record quantity of grains
The worldwide feed industry will use 1,048 million tonnes of grains in the 2024/25 season, the International Grains Council estimates in its latest Grain Market Report. That figure is only 0.4% higher than in the current season 2023/24 but 2.5% more compared to the season 2022/23.
Breakdown of grain use
The feed industry will in the upcoming season consume 45% of the total supply of 2,321 million tonnes of grains in the world, the IGC statistics show. Another 768 million tonnes goes to the production of food while industrial users consumes another 376 million tonnes.
Grain output fall while consumption up
The November estimate for total grains output, that is wheat and coarse grains, is now seen at a 2,311 million tonnes, down by 4 million from the previous month, mainly because of downgraded estimates for barley and wheat. The projection of world consumption is up by 4 million tonnes (month-on-month) to 2,310 million tonnes, with increases for feed, food and industrial uses.
Grains output
Total grains output is forecast to edge to a new peak in 2024/25, pulled higher mainly by larger sorghum, oats and barley outturns. After some big swings in recent seasons, especially for maize, only modest y/y changes in production are expected across the main grains.
New records for consumption
Consumption is also expected to set new records, with food, feed and industrial uptake each at fresh highs. The combination of a reduced supply and higher utilisation will result in tighter carryover stocks, forecast 3% below the previous year, at 576 million tonnes, with a comparatively sharper drop in cumulative exporter inventories, to 135 million tonnes (-5%). Mainly owing to smaller import requirements in Asia and Europe, world trade is expected to fall by 8%, to 419 million tonnes, the International Grains Council says.
Boosted by expectations for sizeable harvests in major growers and exporters, world soyabean output is seen 6% higher y/y, at a record of 419 million tonnes. With gains anticipated to be broad-based, spanning multiple regions and market segments, total utilisation is seen expanding to a new peak, while heavy stock accumulation in the 3 majors is anticipated. Tied to above-average shipments to Asia, Europe and Africa, trade is projected to edge up to 180 million tonnes.
