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Book (stand-alone)Crop Prospects and Food Situation - No. 2 July 2006 2006The world cereal balance will tighten in 2006/07: the latest forecast for cereal production in 2006 continues to show a slight decrease in global output while utilization is expected to grow significantly. With a recovery in feed use and an expansion of industrial uses, world stocks are expected to be drawn down sharply. International prices of most cereals remained firm or rose further in recent months, supported by strong demand and tighter supply prospects. In the Low-Income F ood-Deficit Countries, as a group, a modest growth in cereal output is forecast in 2006, while their imports are expected to increase after the substantial decline of 2005/06.
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