May 26, 2006
IGC ups world 2006/07 wheat output to 600.5 million tonnes
The International Grains Council (IGC) estimates 2006/07 world wheat production at 600.5 million tonnes, up 2.6 million tonnes from April's estimate.
This figure is still down from the IGC's newest 2005/06 global wheat crop estimate of 617.1 million tonnes.
Meanwhile the IGC trimmed 2006/07 world corn output by 1.8 million tonnes to 688.6 million. However this was also still up from the 2005/06 crop of 685.5 million tonnes.
Global coarse grain output in 2006/07 was projected at 985.6 million tonnes, up slightly from last month's forecast of 984.4 million and last year's crop of 972.5 million tonnes.
The IGC cut its forecast for the US 2006/07 wheat crop by 4.0 million tonnes from last month's forecast to 52.0 million tonnes due to persistent hot and dry weather in hard red winter wheat areas.
The agency also trimmed the European Union crop forecast by 1.7 million tonnes to 126.8 million tonnes. India's production estimate was also trimmed by 1.0 million to 72.0 million tonnes.
But offsetting these declines, the IGC raised its forecasts for the Commonwealth of Independent states by 2.5 million tonnes to 75.9 million tonnes; China's by 2.0 million to 96.0 million tonnes and Africa's crop by 1.2 million to 24.0 million tonnes.
"Rains in China improved crop prospects," said IGC.
IGC also said spring wheat prospects in the US and Canada remain good.
IGC said US corn planting is nearly complete on an area which may exceed earlier predictions.
"With average yields the crop is projected at 276 million tonnes, 6 million less than last year," said the report.
European corn crop conditions remain favourable, but more rain is needed in China for crop development, said IGC.
"Rising demand is stimulating increased output in South-east Asia."