March 31, 2008

2008-09 World Grain production marginally up from last year's high

The International Grains Council Friday (March28, 2009) forecast 2008-09 global grain output at 1.694 billion tonnes, a 32-million-tonne increase from 2007-08's record high production.

"Growing conditions in the northern hemisphere have been reasonable so far and, with average weather from now on, yields should increase in several key producers," said IGC.

However IGC added, "despite very high prices, the total grain area is unlikely to increase because of strong competition from oilseeds and other crops."

IGC forecasts 2008-09 global corn output at 748 million tonnes, down 20 million from 2007-08.

"The US accounts for most of the fall because of a switch to soy," said IGC.

China's corn crop would also be smaller, but the European Union was set to harvest 11 million tonnes more corn in 2008-09.

Global wheat output was forecast at 646 million tonnes, which is up 42 million tonnes from 2007-08, but unchanged from an IGC a month ago.

IGC added that global 2008-09 barley output would be up 10 percent on the year at 148 million tonnes.