April 3, 2012

Global wheat output forecast lower by 15 million tonnes

Global wheat output is forecasted to drop by 15 million tonnes to 681 million tonnes this year.

In its first forecast for the 2012-13 harvest, International Grains Council, the London-based body, said Monday (Apr 2) that output will be capped by a reduction in the average yield from the previous marketing year's high, with smaller crops in Australia, Kazakhstan, Morocco and Ukraine only partially offset by better outcomes in North America and Russia.

Meanwhile, the IGC said global corn production is projected to increase 4% on-year, to 900 million tonnes, with total plantings expected to reach an all-time high due to favourable pricing and good potential returns.

"The supply and demand outlook for corn is projected to remain quite tight in 2012-13, but a larger crop, including a major upturn in the US, is expected to be not entirely absorbed by demand, leaving room for a modest rise in stocks," it said.