October 28, 2011

Global corn production to increase 3.5%

Global corn output forecast is expected to reach a record 855 million tonnes in 2011-12, increasing 3.5% from the previous season by 10 million tonnes, according to the International Grains Council (IGC) Thursday (Oct 27).

Output from Europe is pegged at an unprecedented 63.8 million tonnes, above its previous record of three years ago and up eight million tonnes from 2010-11, the London-based body said.

China is expected to produce 183 million tonnes, three million tonnes more than predicted in September while crops in South American producers Brazil and Argentina are both seen higher at 27 million and 60 million tonnes, respectively.

"World corn production prospects have improved during the past month, with crops forecast to be at, or close to, record highs in many leading growers," said the IGC.

Although more grain is available than previously expected, usage is also expected to rise, so ending stocks are seen only five million tonnes higher at 123 million tonnes.

China's corn imports are revised up by one million tonnes to four million tonnes, still well below industry forecasts while Europe is also expected to use more of the grain for feed.

"Improved availabilities are expected to encourage additional feeding in some countries," said the body.

Prospects for the world's wheat crop are improving too, with output now expected to hit 684 million tonnes, up five million tonnes from the IGC's previous forecast, and boosting carryover stocks to a 10-year high of 202 million tonnes.

Total grain output is seen at 1.819 billion tonnes, up 13 million tonnes from the previous forecast, the IGC said.