The world will produce more wheat than earlier forecast and slightly more corn, according to updated 2008-09 projections from the International Grains Council.
The IGC’s May 30 report raised its world wheat output forecast to 650 million tonnes.
In April, the intergovernmental organization based in England predicted a wheat crop of 645 million tonnes.
IGC forecasters do have concerns about dry planting conditions for wheat in Argentina and Australia, but those worries were offset by rainfall in the northern hemisphere.
Precipitation in the European Union, Russia, Ukraine and the U.S. winter wheat region has led to expectations of a 46 million tonne increase from last year, when the world produced an estimated 604 million tonnes.
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On the demand side, the IGC expects lower wheat prices to “stimulate a recovery in food use … and feed use will increase, especially in the EU and U.S. because of tight supplies of other feeds”
As a result, it predicts global use to rise to 632 million tonnes, which is 20 million tonnes more than last year.
The IGC’s forecast is more neutral on corn. It is projecting the world will produce 763 million tonnes, up one million from April’s forecast.
“In the U.S., cool and wet weather delayed seeding and crop emergence, reducing yield potential, but conditions remain favourable in the EU and China,” the IGC said.
The estimate means the world is unlikely to match last year’s record of 777 million tonnes of corn.
