FAO Cuts Global Cereal Output Forecast Amid European Maize Woes

The Food and Agriculture Organization of the United Nations (FAO) has revised its forecast for global cereal production in 2026, lowering it to 2,980 million tonnes. This represents a decrease of 3.4 million tonnes from the previous estimate.

The main driver behind this downward revision is maize production, which is now expected to be 1,309 million tonnes, down 0.6 percent from June's projection. The European Union's crop prospects have weakened due to heat and dryness in France and Poland, resulting in lower yields than the five-year average.

On the other hand, wheat production has seen a slight increase, with global output now expected to reach 810.7 million tonnes, up 0.5 percent from previous estimates. This is mainly due to improved prospects in Russia and Ukraine, as well as higher forecasts for Canada and Morocco.

Global cereal utilization is forecast at 2,965 million tonnes, a 0.2 percent increase from the previous season. However, global cereal stocks have been reduced by 10.7 million tonnes to 947.2 million tonnes due to lower production and higher consumption.