IGC boosts global grains forecast for 2017-2018

The International Grains Council (IGC) lifted its forecast for 2017/18 world grain production on Thursday, mostly reflecting improved prospects for the US corn crop. The inter-governmental body, in a monthly report published on Thursday, forecast total grain production at 2.075 billion tonnes, up 6 million tonnes from its previous forecast.
The estimate still puts the crop behind last season's record 2.133 billion tonnes, but it is expected to be the second-largest in history. Global corn (maize) production was seen at 1.034 billion tonnes, up 5 million tonnes from its previous forecast but still below the 2016/17 record of 1.079 billion.
The increase was mostly due to a better outlook for the United States, where estimates were boosted to 362.7 million tonnes from 358.4 million. The IGC also marginally boosted its estimate for the world wheat crop to 748.5 million tonnes, from a prior forecast of 747.6 million tonnes.
"Downgraded outlooks for Australia and Argentina are outweighed by gains for the EU, the USA and Ukraine," the IGC said in its report. European Union wheat production was seen at 155.9 million tonnes, from a previous estimate of 154.4 million tonnes.
Global grains consumption for the 2017/18 season was revised up by 8 million tonnes to a new peak of 2.104 billion tonnes. The improved outlook was mostly due to stronger corn consumption, which was boosted by 9 million tonnes to 1.067 billion.
"Much of the rise in maize consumption is in China, where government measures are stimulating demand in order to curb stocks," the IGC said. "Stronger demand is reflected in a reduced global grains ending stocks forecast, with inventories seen contracting for the first time in five years."