The Food and Agricultre Organization of the United Nations (FAO) track cereal production (which is an interchangeable term for grain production).
In their November 2019 Cereal Suppy and Demand Brief they list the production figures for the past three years, and estimates for this year.

**At an estimated 2.6888 billion tonnes in 2018/2019, utilization slightly outweighs estimated production by 1.1%.**
If we accept "demand" refers to utilization, the claim is true.
(I didn't try to work out whether the drought was a cause or just a correlation.)