LONDON, July 28 (Reuters) – The International Grains Council on Thursday raised its forecasts for global corn production in the 2016/17 season, largely reflecting improved crop prospects in the United States.
World corn (maize) production was upwardly revised to 1.017 billion tonnes, up from a previous projection of 1.003 billion and the prior season’s 968 million.
“Better crop prospects in the U.S. account for most of the change for maize,” the IGC said in a monthly report, raising its forecast for the 2016/17 U.S. corn crop by 10 million tonnes to 365 million.
The IGC also raised its forecast for global wheat production in 2016/17 to 735 million tonnes, up from a previous projection of 729 million but still marginally below the prior season’s 736 million.
“Much of the upward revision is for the CIS (former Soviet Union) and the U.S., but the figure is reduced for the EU, where there is increasing evidence of yield and quality damage following untimely rains,” the IGC said.
Total grains production was forecast to reach 2.046 billion tonnes, up from the prior season’s 2.000 billion and only fractionally below the record 2.047 billion harvested in the 2014/15 season.
“Amid large availabilities, competition between feed grains is expected to be strong. Heavy supplies of below-average quality wheat from this year’s harvest are trading at attractive prices relative to alternative feeds,” the IGC said.
The IGC also increased its forecast for the 2016/17 world soybean crop to 321 million tonnes, up from a previous projection of 320 million and the prior season’s 316 million.
“World soybean output is tentatively predicted to recover to a fresh high … in 2016/17, linked to assumed area gains in leading producers, especially Brazil,” the IGC said.