Market News & Headlines >> IGC Trims World Grain Stocks Estimate
The International Grains Council (IGC) on Thursday boosted its forecast for 2017/18 world grain production slightly further, due largely to improved prospects for U.S. corn production, but lowered projected world grain ending stocks on stronger expected demand.
The inter-governmental body, in a monthly report, forecasted total world grain output at 2.075 billion metric tons, up 6 million tons or 0.3% from its previous forecast. The increase was largely due to a 5-million-ton increase in projected corn production to 1.034 billion tons. Production is still seen down 2.7% from last year’s record large 2.133 billion tons, but is expected to be the second-largest on record.
Global grain consumption for 2017/18 was revised up by 8 million metric tons to a new record high of 2.104 billion tons, due primarily to a 9-million-ton increase in expected corn consumption, now forecast at 1.067 billion tons. "Much of the rise in maize consumption is in China, where government measures are stimulating demand in order to curb stocks," the IGC said.
The IGC lowered its world corn ending stocks forecast by 4 million tons and now sees stocks falling by 32 million tons from last year. Total world grain ending stocks were lowered by 4 million tons as well to 493 million. "Stronger demand is reflected in a reduced global grains ending stocks forecast, with inventories seen contracting for the first time in five years."
The IGC left its global soybean production forecast for 2017/18 unchanged from September at 348 million tons, just below the 350 million produced in 2016/17. Soybean consumption was projected at 353 million tons, up from a previous forecast of 351 million.