The production & trade in cereals are seen to be expanding in 2020-2021.
Thus, global cereal markets are expected to remain adequately supplied in the mentioned period.
Even when this month's revision of production & inventories is expected to be downwards.
FAO's latest forecast for world cereal production in 2020 now stands at 2,762 million tons.
At this level, the global cereal output might remain at its all-time-high, breaking the previous year's out turn by at least 2.1%.
On the other hand, this month's downward revision represents lower output expectations for the global coarse grain output with production levels at 1,488 million tons down by 0.5% from the previous report.
This cutback has resulted from smaller projected maize crop in the European Union, Russian Federation & Ukraine due to recent dry weather condition.
While the forecast for maize production in China & the USA has been lowered due to the weather conditions, this year's output is way more than that of last year.
The world's barley production is raised by 1.6% to 156.6 million tons for the month, followed by better yields in the USA and Russian Federation.
FAO's forecast for global wheat production in 2020 has been revised upward by 5 million tones to a high level of 765 million tones.
The excellent weather conditions in Australia have led to this better yield prospects.
The production in rice is more extensive than earlier as anticipated plantations have boosted the production outlook for Mali, Sri Lanka, USA, and in India.
FAO's forecast of world rice production in 2020 remains unchanged since September at 509.1 million tones raised 1.6 percent YoY on new high records.
As far as Global trade in cereals is concerned, it's forecasted to reach an all-time-high of 448 million tons in 2020-21, 6.2 million tons more than the previous forecast of September.
The coarse grain trade for 2020-21 is likely to expand by 7.2 million tons from 2019-20 levels.
This is mainly due to the strong demand for maize, barley & sorghum.
A strong export in maize is expected from the USA while its shipment from Brazil & Argentina is likely to fall from their 2019-20 level.
The global Wheat trade is expected to remain at the relative levels to 2019-20.
The world rice trade in 2020-21 is expected to see significant demand from Africa, and the supply prospects are improved.
Export forecasts were increased for India to an all-time high this month, but this was balanced by outlook cuts made for Pakistan, especially Thailand.