March 3, 2014

In 2014-15, global wheat and corn crops may decline slightly as yields fall to more normal levels, the International Grains Council (IGC) said.

IGC said in a monthly report that output of wheat could decline by 2% on-year as yields are unlikely to be as high as the exceptional levels the previous year.

The IGC projected a global wheat crop of 696 million tonnes in 2014-15, down from a forecast 708 million in the current season and slightly below expected total wheat use next season of 698 million tonnes.

Global corn crop in 2014-15 was seen down 1% from this season's record 959 million tonnes, also reflecting a return to more normal yields, IGC said.

"Yields are also expected to retreat from this season's highs for the 2014-15 (corn), barley and rapeseed crops," the IGC said.

The IGC made only minor adjustments for the current 2013-14 season, raising the global wheat crop overall by one million tonnes to 708 million.

It raised wheat crop forecasts for Australia (27.0 million tonnes from 26.2 million) and Brazil (5.5 million from 4.8 million), but lowered the outlook for Kazakhstan (13.9 million from 14.6 million tonnes).

Global corn production in 2013-14 was maintained at a record 959 million with no significant revision, however, it raised its forecast for global corn consumption in 2013-14 by four million tonnes to 932 million.

Consumption is expected to expand 8%, on-year, led by a sharp rise in feed use, but world closing stocks will still likely be up 21% on-year, the IGC said.