Increase in 2013/14 world grain production is accompanied by an increase in demand.
Jack Watts of HGCA at its conference in the UK Grain Event 2013 offered us an overview of what will happen in the grain markets in the coming months.
According to Jack, in 2013 we returned to normality in global grain production. In his talk he reminds us that in 2012 there were serious problems in the UK, major droughts in Russia and USA and the world in general.
However, since the end of 2013 we are already seeing a rebound in grain production worldwide, dominated by maize.
Supply of grain to the world market increased in 2013, but so did the demand. This trend of global grain demand is largely led by growing population, but also by growing wealth in the emerging economies. They demand to feed more animals to meet the increasing demands of more people wanting a Westernized diet (that is, including meat in their diets).
The full conference is available on Youtube: