The International Grains Council expects grain supplies will again be ample in 2016-17.
The IGC’s January report says large stocks will be carried in to the new year and prospects for production are little changed from the previous year.
For wheat, IGC forecasts a slight reduction in global seeded acres.
“While conditions for 2016-17 winter wheat have not been entirely ideal in some regions, global harvest prospects remain mostly favourable,” the report said.
The organization tentatively forecasts average yields leading to production of 706 million tonnes, down about three percent.
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However, it sees reduced feed consumption meaning global consumption will likely decline.
“Some contraction is possible in end-2016-17 stocks, but inventories could still be the second highest ever.”
IGC increased its estimate of 2015-16 year end wheat stocks to 213 million tonnes, up by five million tonnes due to a combination of increased production estimates for China and Canada and a slight reduction in expected consumption.
However it trimmed its estimate of 2015-16 corn production by eight million tonnes to 959 million and lowered its year end stocks number to 196 million tonnes.
Overall, global grain stocks at the end of the current crop year are seen at a 29-year high.
