The Food and Agriculture Organization of the United Nations (FAO) has released a global supply and demand briefing showing that global cereal consumption is expected to increase by 61.8 million tons or 2.2% year-on-year in 2025/26, reaching 2.938 billion tons. The increase this time is mainly due to a 3.0% increase in corn consumption, while the consumption of wheat, sorghum, and barley is expected to also increase. Since the supply and demand report in December, global grain consumption has slightly increased.

The FAO report shows that corn consumption increased by 3.0% year-on-year in 2025/26, with significant demand growth benefiting spot prices and potentially driving up market supply and demand tension. Combined with corn futures data (such as the Dalian Commodity Exchange 2701 contract rising by 2 RMB/ton), strong demand expectations support the upward trend of futures prices, and changes in holdings indicate an increase in market activity, leading to stronger bullish sentiment in the future.

The global consumption of grains has increased, and wheat consumption is expected to grow, which is favorable for spot prices. The rise in demand may lead to a tightening of market supply and demand balance. However, the report did not provide specific details on the increase, and the impact was relatively mild, with a neutral to positive bias.

The consumption of sorghum is expected to increase, and the growth in demand is favorable for spot prices, which may alleviate the pressure of oversupply. The information does not specify the increase, and the overall impact is generally positive. We need to pay attention to changes in supply and demand data in the future.

The expected increase in barley consumption and rising demand will benefit spot prices, which may boost market confidence. The report lacks specific data and the impact is generally positive. It needs to be evaluated in conjunction with actual consumption dynamics.

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