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And world cereals stocks as a proportion of production are the lowest ever recorded.
A study by IFPRI calculates that getting rid of these would reduce world cereals prices by an average of 30%.
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The United Nations Food and Agriculture Organization says world cereal stocks this year will be the lowest since 1982.
Less than 5percentt of world cereal production will go to biofuels this season, according to the Food and Agriculture Organization of the United Nations.
It predicts that world cereal markets will stay tight in 2011-12 desomee some better-than-expected recent predictions for wheat and rice.
Because world cereal prices rose, they did not suffer from the CAP's price cuts, and yet they still received compensatory payments.
World cereal production is now expected to contract by 2% in 2010; in June it was forecast to expand by 1.2%.
In 1995 and 1996 grain prices rose rapidly and world cereal stocks fell to record lows, causing an upsurge of panic at the prospect of a world food crisis.
It added that world cereal production was expected to hit another new record this year of 2.4 billion tonnes, 2% higher than last year's record high.
The FAO said this would result in a significant reduction in world cereal stocks by the end of 2013, but added that very early indications for wheat crops in 2013 were encouraging.
World cereal production in 2012 reached 2300 million tons.
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