IGC sees record maize crop in 2012-13

The global maize crop is forecast at a record 900 million tonnes in 2012/13 and will outstrip demand for the first time since the 2008/09 season, the International Grains Council said on Monday. "The supply and demand outlook for maize is projected to remain quite tight in 2012/13 but a large crop, including a major upturn in the US, is expected to be not entirely absorbed by demand, leaving room for a modest rise in stocks," the IGC said in a monthly report.
US farmers will plant the most corn (maize) in 75 years to cash in on higher prices, topping expectations due to surprise reductions in soybean and spring wheat sowings, according to a US government report on Friday. The IGC forecast global maize consumption in 2012/13 would climb to 893 million tonnes from the prior season's 874 million. "Global stocks are projected to increase modestly as a rise in the US more than offsets declines in China and Brazil," the IGC said. The IGC projected the 2012/13 world wheat crop at 681 million tonnes, marginally above the prior month's forecast of 680 million but still shy of previous season's 696 million.
"Crops may be smaller in Australia, Kazakhstan, Morocco and Ukraine but better outcomes are expected in North America and Russia," the IGC said. World wheat consumption is seen rising marginally in 2012/13 to 683 million tonnes from the prior season's 681 million, resulting in a marginal drawdown in stocks.
"World stocks are forecast to recede from the past year's peak, but availabilities should remain comfortable, including in the major exporters," the IGC said. The IGC raised its forecast for Iran's grain imports in 2011/12 to 7.4 million tonnes, up from a previous projection of 5.2 million, following the recent buying spree.
The upward revision mainly reflected higher anticipated wheat imports of 3.0 million tonnes, up from a previous forecast of 1.0 million. Iran has been shopping for wheat at a frantic pace, ordering a large part of its expected yearly requirement in a little over one month and paying a premium in non-dollar currencies to work around toughened Western sanctions and avoid social unrest.