For all the concern about bad weather damaging corn fields in the U.S. and Europe, Chinese farmers will harvest the most on record.
The International Grains Council raised its estimate for Chinese corn production by 5 million metric tons to an all-time high of 225 million tons, according to a statement released Thursday. The group also boosted its estimate for global corn output.
While the global crop will still be less than last year’s record, the increase from China will offset some of the decline in U.S. and European production. Corn futures in Chicago fell 9.7 percent in July, the biggest drop in almost a year, on expectations grain supplies will remain abundant.
Farmers around the world will harvest 966 million tons of corn in the 2015-16 season, the London-based IGC said, a 0.3 percent increase from its June estimate.
China’s corn production may climb 4.3 percent in the season, the IGC said. U.S. output is forecast to drop 8.1 percent to 332 million tons.
World wheat production may fall 1.5 percent to 710.3 million tons, 1 million tons less than last month’s estimate, based on the report.