Droughts, Ukraine war push global grain stocks toward worrying decade low

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The world is heading toward the tightest grain inventories in years despite the resumption of exports from Ukraine, as the shipments are too few and harvests from other major crop producers are smaller than initially expected, according to grain supply and crop forecast data.

Poor weather in key agricultural regions from the United States to France and China is shrinking grain harvests and cutting inventories, heightening the risk of famine in some of the world's poorest nations.

That would be fewer days of corn stocks than the world had in 2012, when the last global food crisis spurred riots.The World Bank has earmarked $30 billion to help offset food shortages worsened by war, and U.S. President Joe Biden last week announced nearly $3 billion in additional funding to combat global food insecurity.

Thousands of miles away in the United States, South Dakota corn grower Mark Gross expects to harvest as few as 20 bushels per acre on some fields this autumn, down more than 80% from the local average last year, after drought and fierce winds ravaged his land. More poor weather could further reduce global inventories, particularly if the current dry weather in South America continues into the main planting season, as the crop cycle shifts to the southern hemisphere.

 

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Food insecurity is a polite way of saying people are going to starve.

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