London | Reuters – The International Grains Council (IGC) recently cut its forecast for world corn production in the 2019-2020 season, driven by a diminished outlook for the United States crop.
The inter-governmental body, in a monthly update, reduced its global corn (maize) crop forecast by seven million tonnes to 1.118 billion tonnes. The U.S. corn crop was projected at 362 million tonnes, down from a previous forecast of 371 million.
Why it matters: Production reports from around the world drive supply-demand fundamentals and often affect futures prices and farmer plantings.
Chicago corn futures rose to a three-year high in early June, buoyedw by delays to U.S. plantings as rains swept across the Midwest.
Global corn production in 2018-19 was put at 1.126 billion tonnes.
The IGC cut its forecast for global corn consumption in 2019-20 by 10 million tonnes to 1.151 billion, although it remained slightly above the prior season’s 1.144 billion.
Global corn stocks were seen falling to a six-year low of 284 million tonnes by the end of the 2019-20 season.
The council increased its forecast for 2019-20 world wheat production by four million tonnes to 766 million and an increase in stocks was anticipated with consumption seen at 753 million.
Global soybean production was seen at 358 million tonnes in 2019-20, down from the previous season’s record 363 million. A small drawdown in stocks was expected with consumption projected at 359 million tonnes.
“Prospects for (soybean) supply and demand in 2019-20 are uncertain. Nevertheless, assuming larger outturns in the southern hemisphere help to compensate for a fall in the U.S., output is predicted just five million tonnes lower year-on-year and above average,” the IGC said.