World grain harvest in 2009-10 to decline from this year

The world grain harvest in the 12 months through June 2010 will be 3.4-percent below the all-time high set this year, the International Grains Council (IGC) said in a report.

 

Production will reach 1.725 billion tonnes as farmers plant less and yields shrink, compared with 1.785 tonnes in this year ending June, the report said.

 

Weaker consumption caused by the global economic woes will indicate record grain stockpiles, offsetting next year's fall in production, the report said.

 

The IGC noted there are indications of slowing grain demand, especially for animal feed.

 

World corn harvest is expected to drop less than 1 percent to 775 million tonnes in 2009-10, with a decline in planted areas in the EU and former Soviet Union states. The IGC maintained its outlook for the corn harvest this year at 782 million tonnes.

 

Corn plantings in the northern hemisphere have begun but there is still uncertainty about growers' intentions particularly in the US, where some farmers may prefer to grow soy, especially if wet conditions persist, the IGC said.

 

Wheat production is expected to fall 5.4 percent to 651 million tonnes in 2009-10, up from last month's forecast of 649 million tonnes, while stockpiles are expected to jump 6.9 percent to 171 million tonnes.

 

The council maintained its wheat production outlook for this year at 688 million tonnes, but raised its estimate for stockpiles to 160 million tonnes from 157 million tonnes.

 

IGC said winter wheat is developing well in the EU and in former Soviet Union states, while rains in China and the US southern Plains have eased crop concerns there.

 

Wheat consumption is expected to drop to 640 million tonnes in 2009-10 from 643 million tonnes this year, because of a drop in animal feed use, the IGC said.