LONDON, April 27 (Reuters) – The International Grains Council on Thursday raised its forecasts for the 2017-18 world corn and wheat crops but both remained below the prior season and a drawdown in stocks was anticipated.
The IGC, in a monthly report, raised its forecast for the 2017-18 global grains crop by 4 million tonnes to 2.054 billion tonnes.
While up from last month’s forecast, it is down from 2.111 billion in 2016-17.
Consumption was seen at 2.079 billion tonnes, unchanged from the IGC’s previous forecast for 2017-18 and slightly up from the prior season’s 2.075 billion.
Read Also
Potash maker Nutrien to sell stake in Argentina’s Profertil for $600 million
Canadian-based fertilizer giant, Nutrien said on Monday it will sell its 50 per cent stake in Argentina-based nitrogen producer Profertil for $600 million, as the world’s top potash producer shifts focus away from South America.
Grain stocks at the end of the 2017-18 season were seen falling by 25 million tonnes to 491 million, mainly driven by a 20-million-tonne decline in corn inventories.
“Only a relatively small depletion of carryover stocks is envisaged (in 2017-18) … Maize (corn) accounts for most of the drop, partly linked to ongoing efforts to reduce inventories in China,” the report said.
The IGC raised its forecast for the 2017-18 world corn crop by two million tonnes to 1.026 billion tonnes, partly reflecting an improved outlook for production in Canada.
Production was still, however, seen about three percent below the prior season’s record 1.059 billion tonnes.
The IGC also increased its forecast for the 2017-18 world wheat crop by 1 million tonnes to 736 million tonnes, although that remained about two percent below the prior season’s 753 million tonnes.
Global soybean production was seen at 348 million tonnes in 2017-18, up from a previous forecast of 345 million but below forecast consumption of 350 million.
“Despite a potentially larger crop and expanded supplies, world soybean stocks may tighten slightly in 2017-18,” the IGC said, putting 2016-17 production at 345 million tonnes.
