IGC Raises World 11-12 Corn Output View 7.7M Tons To 860.8M Tons

IGC Raises World 11-12 Corn Output View 7.7M Tons To 860.8M Tons

World corn production is expected to rise 4.2% from last season’s 826.4 million metric tons in 2011-12, the International Grains Council said, increasing its previous estimate by 7.7 million tons.

“Despite a smaller U.S. crop and a worsening outlook for South America, total maize (corn) production in 2011-12 is forecast to increase by 4%, to a record 861 million tons,” the IGC said. “Harvests in China and Ukraine were especially large and, although forecasts have been reduced this month, Argentina and Brazil are still expected to produce record crops,” the IGC said in its montly report.

The U.S. is expected to produce 313.9 million tons of corn–0.9 million tons more than predicted in November–while crops in South American producers Brazil and Argentina are seen at 59 million tons and 23 million tons, respectively.

European corn output is pegged at an unprecedented 65 million tons–0.3 million tons more than predicted in November, the London-based body said.

World 2011-12 wheat output was also revised higher by 6.6 million tons to a record 689.8 million, the IGC said, citing better-than-expected results in the southern hemisphere, especially in Argentina and Australia but also sizeable upwards revisions to estimates for China and Kazakhstan, the IGC said.

“Approximately half of the increase in the global supply figure is absorbed by greater feed use, as competitive prices relative to maize continue to capture additional demand,” said the IGC. But world wheat stocks at the end of the current crop year are revised higher to 204 million tons, just below the record of 2.6 million tons in 1999-2000, said the IGC.

“Major exporters’ stocks are projected to rise significantly in Kazakhstan and Ukraine, but those in the EU and U.S. are to stay broadly unchanged,” added the IGC.

In the Commonwealth of Independent States, Kazakhstan’s wheat output for the 2011-12 crop year is forecast to hit 20 million tons, more than 2 million tons higher on the IGC’s November estimate while Russia’s output is pegged at 56.2 million tons. Ukraine’s wheat output for the current crop year was also revised higher to 22.4 million tons, up from 21.5 million tons estimated in November.