June 14, 2012

Bumper corn crops in Brazil, US to boost world grain output

Bumper corn harvests in Brazil and the United States are expected to further support 2012 global grains output, the United Nations' food agency said on Wednesday (June 13).

The Food and Agriculture Organisation (FAO) said in its Crop Prospects and Food Situation report for June it expected Brazil's aggregate corn production to reach 67 million tonnes in 2012, up 20% from 2011.

FAO said favourable conditions were allowing early fieldwork in many parts of the United States, which raised the possibility that plantings could rise above expectations and average corn yields could turn out above trend.

The US Agriculture Department's first forecast of 2012 corn production points to a record crop of 376 million tonnes, an increase of 43 million tonnes from a previous record in 2009, FAO said in its report.

Prospects for cereal crops in Europe, on the other hand, have deteriorated further, FAO said, reflecting persisting dry conditions in some central EU countries, combined with very high spring temperatures.

While EU corn plantings are forecast to increase, yields are expected to deteriorate and output is expected to decrease by about 4% to 64 million tonnes, FAO said.

Argentina's corn output is also expected to fall 12% to 20.1 million tonnes in 2012, after a prolonged dry spell in December and January reduced the yield potential.

The Rome-based agency said earlier in June it expected world cereal production to increase by 3.2% to 2.419 billion tonnes in 2012.