LONDON, U.K. (Reuters) — The International Grains Council has raised its forecast for global corn and wheat production in 2015-16.
The increase adds to grain stocks that are expected to be at the highest level in almost 30 years at the end of the season.
World corn production in 2015-16 was seen at 969 million tonnes, up 10 million from the previous month’s projection of 959 million, though still below the previous season’s 1.016 billion.
“The all-grains ending stocks projection is lifted by 10 million tonnes to 465 million, the most in around three decades,” the IGC said in a monthly update.
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The IGC also forecast a one percent expansion in the global corn area for the 2016-17 crop.
“A small increase in production (in 2016-17) is seen being entirely absorbed by higher use, but ending stocks are projected to recede only slightly and will likely remain in excess of 200 million tonnes,” the IGC said.
World corn stocks at the end of the 2015-16 season are expected to climb to 213 million tonnes from 200 million a year earlier.
World wheat production in 2015-16 was seen at 732 million tonnes, up one million tonnes from the previous estimate.
IGC said world wheat production was projected to fall by 21 million tonnes in the 2016-17 season.
“Only a small drop in area is anticipated, but average yields may not be as high as in the previous season,” the IGC said.
Large stocks would help cushion the impact of any decline in wheat production, it added.
