June 26, 2020
Global grains council increases 2020/21 global wheat, corn output estimate
On Thursday, the International Grains Council (IGC) announced a higher estimate for global wheat output in the 2020/21 season, with improved outlooks for Australia and China more than offsetting a downward revision for the EU, Reuters reported.
In its monthly update, the inter-governmental body increased its global wheat crop forecast by two million tonnes to 768 million, up from the prior season's 762 million.
Australia's wheat crop was seen at 26.2 million tonnes, up from a previous projection of 24.0 million and sharply above the prior season's 15.2 million.
The improved outlook follows recent heavy rains, which broke a three-year drought that has ravaged the country's east coast.
The crop in China, the world's top wheat producer, was seen at 135 million tonnes, up slightly from a previous forecast of 134 million and the prior season's 133.6 million.
The IGC cut, however, its forecast for the EU where dry spring weather has curbed yield potential.
Forecast production for the trading bloc, which excludes Britain for the first time in the 2020/21 season, was seen at 128.4 million, down from a previous projection of 131.7 million.
The council put 2020/21 world corn production at 1.172 billion tonnes, up from its previous projection of 1.169 billion, while total grains output was raised by seven million tonnes of 2.237 billion.
Grains stocks by the end of the 2020/21 season were expected to climb to a three-year high of 635 million tonnes, up 20 million tonnes from a year earlier.
World soybean production in 2020/21 was seen at 364 million, slightly up from a previous projection of 363 million, driven by a small upward revision for Brazil.