Global grain production is projected to surpass 3 billion tons in 2025, marking an unprecedented milestone. This represents a significant 4.9 percent increase compared to the 2024 harvest. This surge is largely attributed to anticipated strong wheat yields in key regions, particularly Australia and Argentina.
Expanded cultivation areas and record yields are expected to drive this historic harvest. Production increases are also anticipated in Europe and the United States. Furthermore, the output of coarse grains, such as barley, is also forecast to rise, while rice production is expected to increase by approximately 1.6 percent.
In related news, global food prices experienced a decline in November, continuing a downward trend for the third consecutive month. This decrease is primarily due to abundant production. The Food Price Index fell by 1.2 percent within the month, reaching a level 2.1 percent lower than in November 2024 and approximately 22 percent below its peak in March 2022.
According to the latest report, grain prices saw a slight increase of 1.3 percent during the month, driven by a 2.5 percent rise in wheat prices. Conversely, oil prices continued their decline, falling by 2.6 percent in November due to lower prices for palm, canola, and sunflower oils. Meat prices remained relatively stable, experiencing a minor decrease of 0.8 percent, while dairy prices fell by 3.1 percent, primarily due to reduced prices for butter and whole milk powder. Increased global production and higher exportable surpluses contributed to this decline.
Sugar prices also experienced a significant drop of nearly 6 percent during the month, driven by anticipated abundant production in Brazil, India, and Thailand.
