World grain reserves have reduced to a minimum due to the drought and the war in Ukraine

Despite the recovery of exports from Ukraine, the analysts believe that the world will reach the lowest grain reserves in recent years.

Supplies are too tight, and other major grain producers’ harvests are smaller than expected, Reuters reports.

Food importers and producers hoped that crop availability would improve after Ukraine resumed supplies from Black Sea ports and the US would harvest more than last year. However, according to new forecasts, the United States will harvest the smallest corn crop in three years. At the same time, the drought has also damaged European crops and threatens the upcoming planting season in South America.

“By the end of 2022/23, global corn reserves will be enough for only 80 days of consumption, which is 28% less than five years ago, and is the lowest level since 2010/11,” writes the publication with reference to data from the International advice on grain.

Against the backdrop of grain stocks, the World Bank allocated $30 billion to compensate for food shortages worsened by the war. Also, US President Joe Biden last week announced the allocation of almost $3 billion in additional funding to ensure food security.

However, the drought could lead to further reductions in global supplies, especially if the current dry weather in South America persists into the main planting season as the crop cycle shifts to the southern hemisphere.