FAO Predicts 2% Decline in Global Cereal Production for 2026/27 Due to Adverse Weather and Rising Costs
The Food and Agriculture Organization (FAO) of the United Nations has forecasted a 2% decline in global cereal production for the 2026/27 season. This anticipated drop is primarily attributed to lower wheat harvests in major producing countries, exacerbated by adverse weather conditions. In the United States, winter wheat crop conditions are reported to be among the least favorable in decades, contributing to a tightening global supply outlook. Additionally, rising fuel and fertilizer costs are adding pressure on cereal markets. Despite the expected production decline, global cereal utilization is projected to increase by 0.6%, driven by continued demand for food, feed, and industrial uses. Consequently, world cereal stocks are expected to contract slightly by 0.3%, with a notable decrease in rice inventories.