August 26, 2011

IGC foresees world corn output to decrease

Dramatic cuts in the US crop forecast has caused the International Grains Council to reduce the expected global corn output by 10 million tonnes to 849 million tonnes in 2011-12 on Thursday (Aug 25).

According to Dow Jones, the London-based body said that production prospects in the southern hemisphere have improved so the 2011-12 corn crop is still projected to be the largest on record at 849 million tonnes.

World wheat output is now forecast to hit 677 million tonnes, up by three million tonnes on the previous estimate due to improving prospects in Europe, Russia and China.

World grain production is expected to hit a record 1.81 billion tonnes in 2011-12, but will still lag increasing global consumption.

"The substantial recovery in Black Sea region supplies will result in a major shift back to this origin, especially for wheat, with the downturn in US corn exports also partly offset by expected record Ukraine shipments of this grain," it said.