Rome: The Food and Agriculture Organisation of the United Nations (FAO) has announced updated forecasts indicating that global cereal production is set to surpass the three billion tonne mark for the first time in 2025. This development comes amidst larger-than-expected wheat harvests, particularly in Argentina, contributing to an anticipated 4.9% rise in cereal output, reaching 3.003 billion tonnes.

According to Emirates News Agency, the new projections also suggest increases in both coarse grain and rice outputs compared to the previous year. The world rice output is projected to grow by 1.6%, driven by significant contributions from Bangladesh, Brazil, China, India, and Indonesia. The FAO's updated Cereal Supply and Demand Brief provides early insights into trends for the ongoing winter wheat season in the northern hemisphere and coarse grain plantings in the southern hemisphere.

In addition to production forecasts, world cereal utilisation in the 2025/26 period is expected to rise by 2.1% from the previous year. Global cereal stocks are predicted to expand by 6.5% to a record high of 925.5 million tonnes. Furthermore, the forecast for world trade in cereals for 2025/26 indicates a 3.3% increase, reaching 500.6 million tonnes.