LONDON, May 30 (Reuters) – The International Grains Council (IGC) on Thursday cut its forecast for world corn production in the 2019/2020 season, driven by a diminished outlook for the U.S. crop.
The inter-governmental body, in a monthly update, reduced its global corn (maize) crop forecast by 7 million tonnes to 1.118 billion tonnes. The U.S. corn crop was projected at 362 million tonnes, down from a previous forecast of 371 million.
Chicago corn futures have risen to a three-year high this week buoyed by delays to U.S. plantings as rains swept across the Midwest region.
Global corn production in 2018/19 was put at 1.126 billion tonnes.
The IGC cut its forecast for global corn consumption in 2019/20 by 10 million tonnes to 1.151 billion although it remained slightly above the prior season’s 1.144 billion.
Global corn stocks were seen falling to a six-year low of 284 million tonnes by the end of the 2019/20 season.
The council increased its forecast for 2019/20 world wheat production by 4 million tonnes to 766 million and a build in stocks was anticipated with consumption seen at 753 million.
Global soybean production was seen at 358 million tonnes in 2019/20, down from the prior season’s record 363 million. A small drawdown in stocks was expected with consumption projected at 359 million tonnes.
“Prospects for (soybean) supply and demand in 2019/20 are uncertain. Nevertheless, assuming larger outturns in the southern hemisphere help to compensate for a fall in the U.S., output is predicted just 5 million tonnes lower year-on-year and above average,” the IGC said.