IGC raises 2021/22 global grain outlook as prices climb
- In its monthly update, the inter-governmental body saw total grains production at a record 2.292 billion tonnes, up 5 million tonnes from its prior projection.
- Grain prices have risen sharply this year with Chicago corn futures climbing to an eight-year high this month.
LONDON: The International Grains Council (IGC) on Thursday raised its forecast for global grain production in the 2021/22 season as high prices encourage more plantings.
In its monthly update, the inter-governmental body saw total grains production at a record 2.292 billion tonnes, up 5 million tonnes from its prior projection.
Grain prices have risen sharply this year with Chicago corn futures climbing to an eight-year high this month.
World grain production in 2020/21 was seen at 2.220 billion tonnes.
"With high prices expected to encourage larger sowings, world (grain) output in 2021/22 is projected to expand by 6% year-on-year to a fresh peak," the IGC said.
The upward revision was driven partly by improved crop outlooks for India (158.1 million tonnes vs 155.9 million seen previously) and Australia (39.7 million vs 38.4 million).
A drawdown in stocks was still forecast with total grains consumption seen at 2.297 billion tonnes.
The IGC raised its forecast for global corn (maize) production by two million tonnes to 1.194 billion tonnes, well above the prior season's 1.134 billion while wheat production was kept at 790 million tonnes, up 774 million in 2020/21.
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