The International Grain Council (IGC) has lowered its 2011-12 global corn carryover projection by 4 million metric tons (MMT) from last month to 118 MMT, which compares to 126 MMT in 2010-11. The group cut its U.S. corn crop forecast "sharply," now estimating global corn production at 849 MMT, down 10 MMT from last month.
IGC says it expects global corn demand to increase from last season, "but at a slower pace." It adds, "Growth in feed use will be limited mainly to developing countries, with meat output in most industrialized nations likely to increase relatively slowly due to high feed prices and flat demand."
Regarding corn demand, IGC continues, "Growing supplies of competitively priced lower grade wheat will limit demand for maize (corn), while use of distillers dried grains (DDG) will also remain high. After rising sharply in recent years, maize used for the manufacture of fuel ethanol is forecast to show very little growth, with the figure for the U.S. projected to be unchanged from 200-11. EU import needs are seen lower than before and, with some buyers in Asia likely to further boost feed wheat purchases, the 2011-12 world trade forecast is trimmed by 1.4 MMT, to 92.7 MMT, almost unchanged from last year."
Meanwhile, IGC raised its projection of global 2011-12 wheat stocks from last month by 1 MMT to 191 MMT, but still down 1 MMT from 2010-11.