The International Grain Council (IGC) this morning raised its global corn and wheat production projections for 2015-16 from last month. The group also released its first look at 2016-17, in which it expects global corn production to rise another 2.2%, but for global wheat production to decline by 2.9% from 2015-16 levels.
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“Preliminary projections for 2016-17 point to another season of ample global grains availabilities,” states IGC. “A small drop in production is assumed, with a recovery in the maize (corn) harvest outweighed by declines for wheat, barley and sorghum. However, large beginning stocks will keep overall supplies at record levels and while consumption is seen staying strong, ending stocks could match the 29-year high of 2015-16.”
IGC raised its global 2015-16 soybean production peg by 2 MMT from last month to 323 MMT and sees a 3 MMT decline in production in 2016-17 to 320 MMT due to reduced plantings. “With global use likely to rise further, inventories could tighten markedly but, at 33 MMT, would still be above average. Trade is seen up 3% year-over-year on China’s growing needs.”
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