IGC raises forecast for world corn production

LONDON (Reuters) – The International Grains Council (IGC) on Thursday raised its forecast for global corn production in the 2019/2020 season, mainly reflecting an improved outlook for the U.S. crop.

In its monthly update, the inter-governmental body increased its global corn crop forecast by 8 million tonnes to 1.1 billion tonnes.

The U.S. crop was seen at 341.5 million tonnes, up from a previous projection of 333.5 million but still well below the prior season’s 366.3 million.

The IGC outlook remains, however, significantly below the U.S. Department of Agriculture’s current forecast of 353.1 million tonnes.

U.S. farmers have argued the current USDA forecast does not fully reflect the impact of excessive rains earlier this year which stalled planting.

Advisory service Pro Farmer last week issued a forecast of 13.358 billion bushels (339.3 million tonnes) after a crop tour of seven top producing states.

The IGC noted that U.S. corn production prospects “were still uncertain after a less than ideal growing season”.

The council also increased its forecast for 2019/20 world wheat production by 1 million tonnes to 764 million tonnes, with upward revisions for crops in France, the United States, Ukraine and Argentina partially offset by diminished prospects in Russia and Kazakhstan.

World soybean production in 2019/20 was downwardly revised by 4 million tonnes to 344 million “on diminished prospects in the U.S. where harvested area is likely to contract by 14 percent year-on-year,” the IGC said

 

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