September 28, 2007


IGC: Global 2007/08 grain crop to reach 1.655 billion tonnes



The International Grains Council (IGC) raised its forecast for 2007/08 global grain output to 1.655 billion tonnes, up 2.2 million tonnes from last month's projection and up nearly 90 million tonnes on the year.


The increase was due to a significant upward revision to the global corn output forecast, which was largely offset by reductions in world wheat and barley production.


IGC now forecast 2007/08 world corn production at 765.5 million tonnes, up 10.3 million tonnes from the August projection and up sharply from last season's 695-million-tonne crop.


The US corn production forecast was raised this month by 7 million tonnes to 337 million tonnes and Brazil's output was increased by 4 million tonnes to 50 million tonnes. Meanwhile the forecast for European Union corn output was reduced by 1.5 million tonnes to 46.2 million.


IGC now forecasts 2007/08 world wheat production at 601.4 million tonnes, down 5.6 million from the August projection, but still up 11.2 million tonnes from 2006-07.


Australia's wheat output was slashed by 9.0 million tonnes to 13.5 million. IGC said the reduction was due to "fast-deteriorating" crop prospects there.


Meanwhile 2007/08 wheat production forecasts were raised in this month's report in China by 2.0 million tonnes to 107 million tonnes and in Kazakhstan by 1.5 million tonnes to 14.5 million tonnes.


IGC also cut its projection for 2007/08 global barley production by 3.9 million tonnes from last month's forecast, all due to a lower figure for Australia, to 136.3 million tonnes. This is also down from the 2006/07 world barley crop of 138.4 million tonnes.