LONDON (Reuters) – The global wheat market is
expected to see the first drawdown in stocks in six seasons in
2018/19 with production forecast to fall, the International
Grains Council said on Thursday.
“In 2018/19, reductions in both area and average yields may
see the global wheat harvest recede and stocks are predicted to
come down for the first time since 2012/13, the IGC said in a
monthly report.
The inter-governmental body, forecast there would also be a
decline in global corn (maize) stocks in 2018/19 despite a small
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“With a potential decline in the U.S. outweighed by a
rebound in South America, the world maize crop is provisionally
expected to edge higher,” the IGC said.
“Nevertheless, assuming further growth in consumption,
stocks may shrink for a second year in succession.”
The IGC also cut its forecast for 2017/18 global corn
production by six million tonnes to 1.048 billion tonnes partly
reflecting diminished crop prospects in Argentina and Brazil.
Earlier this week, Argentina’s Rosario Exchange slashed its
forecast for the country’s corn crop due to drought in the
world’s third biggest exporter.
The IGC cut its forecast for Argentina’s 2017/18 corn crop
to 46.5 million tonnes from 49.2 million, while Brazilian
production was put at 87.5 million, down from 90.2 million.
Global soybean production in 2017/18 was trimmed by two
million tonnes to 347 million with Argentina’s crop outlook cut.
The global harvested area for soybeans in 2018/19 was,
however, seen rising by two percent, year-on-year.
“The world (soybean) harvested area is tentatively projected
at a new high in 2018/19, including gains in Brazil and the
United States,” the IGC said.
Global wheat production in 2017/18 was kept at 757 million
tonnes.
