June 30, 2006


IGC ups 2006/07 world corn output to 693.1 million tonnes



The International Grains Council (IGC) estimates 2006/07 corn production at 693.1 million tonnes, up 4.5 million tonnes from last month's estimate and up 1.5 million from last year's crop.


The IGC raised 2006/07 corn output figure for China by 5 million tonnes to 137.0 million tonnes. This is down slightly from the 2005/06 China corn output estimate of 139.4 million tonnes.


Offsetting the China figure slightly, the agency trimmed Canada's corn output estimate for 2006/07 by 500,000 tonnes to 8.5 million tonnes.


For wheat, the IGC raised its 2006/07 world output forecast by 4.1 million tonnes to 604.6 million tonnes. But this was still down from the 2005/06 crop of 617.1 million tonnes.


Some of the largest changes on the month for the 2006/07 wheat data included a 2.0 million-tonne increase in China's output forecast to 98.0 million tonnes. The IGC also raised Russia's output by 1.5 million tonnes and increased production in Ukraine, Canada and Pakistan by 1.0 million tonnes each. Iran's wheat output was also raised by 500,000 tonnes.


This was slightly offset by reductions in the US, Argentina and the European Union wheat crops.


US 2006/07 wheat output is now forecast at 50 million tonnes, down 2.0 million tonnes on the month and down 7.3 million tonnes from 2005/06. IGC trimmed output in Argentina and the E.U. by 500,000 tonnes each.


The agency pegged total world coarse grain output for 2006/07 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.


Global barley output was forecast at 146.8 million tonnes, which is down 1.5 million tonnes from last month's forecast, but is up from 139.8 million tonnes in 2005/06.


The IGC forecasts world sorghum production at 59.5 million tonnes in 2006/07, down 800,000 tonnes from last month's forecast and down 700,000 tonnes from last season.


World production of oats in 2006/07 was left unchanged at 25.6 million tonnes, which is up from 24.5 million last year.