April 27, 2012

IGC lowers 2012-13 world wheat output estimates

The International Grains Council (IGC) lowered its 2012/13 world wheat output forecast on Thursday (April 26) in light of reduced crop expectations in the European Union.

"The EU crop forecast is reduced sharply due to reports of worse than expected winter damage and recent dry conditions," the IGC said in a monthly update.

The IGC cut its forecast for the 2012/13 global wheat crop by 5 million tonnes to 676 million, well below the prior season's 695 million.

Global wheat consumption in 2012/13 was seen at 680 million tonnes, down from the prior season's 684 million, with stocks seen dipping to 206 million from 210 million at the end of the 2011/12 season.

The IGC also forecast global corn production in 2012/13 at a record 900 million tonnes, unchanged from its previous forecast and up from 865 million in 2011/12.

"An increase in 2012 plantings is forecast to lift world corn production by 4%," the IGC said.

Global corn consumption was forecast to rise to 893 million tonnes from 869 million and stocks were seen climbing to 135 million tonnes by the end of the 2012/13 season from 128 million a year earlier.

"End-of-season stocks may increase for the first time in four years, including a rebound in the US," the IGC said.