February 29, 2008

World corn planting to slump 3 percent in 2008-09

The International Grains Council (IGC) forecasts Thursday that 2008-09 global corn plantings will be down 3 percent on the year as soy and wheat contest for land, a trend most noticeable in US, where a 5-percent decline is seen.

The IGC said farmers will move to plant more soy, wheat and other crops this year.

The council also noted that there is a need for the EU to substantially increase its corn areas due to feverish demand.

Meanwhile, global soy trade for 2007-08 was estimated at a record 75.8 million tonnes, up by 5 million tonnes on-year.

Thursday's report marked the council's first trade estimates for the major oilseeds.

The increase in trade is driven by rising consumption in Asia, particularly China, the IGC pointed.

US exports are estimated to weaken on a relatively small harvest, while Brazil and Argentina are expected to reap record sales this year.

World wheat output for 2008-09 was seen at a record 646 million tonnes, up 4 million tonnes from the January estimate.

This represents a rise of 42 million tonnes or 7 percent on the year, the IGC stated.