The International Grains Council (IGC) has lowered its estimate of world wheat production in 2020/2021. The world harvest would be reduced by 4 million tonnes to 764 million tonnes due to drought in traditional wheat-growing areas such as Ukraine, Russia and the European Union. Despite this downward revision, the 2020/2021 harvest is still higher than the previous season’s 762 million tonnes. In addition, world cereal stocks are increasing this season for the second consecutive year. As a reminder, the world wheat market was shaken by the announcement by Russia, the world’s largest exporter, of the suspension of its shipments until 1 July.
Source: Ecofin Agency