The International Grain Council (IGC) has raised its peg of 2016-17 global total grains production by 9 MMT from last month to be 12 MMT larger than year-ago. It raised global 2016-17 wheat production by 5 MMT to 722 MMT (736 MMT in 2015-16) and raised global 2016-17 corn production by 5 MMT to 1,003 MMT (971 MMT in 2015-16).
"Wheat prospects are better than before in the EU, the U.S. and Russia, although Morocco’s crop is cut to a nine-year low," says IGC. "Maize (corn) figures are raised for the U.S. and Argentina, but lowered for China and parts of sub-Saharan Africa."
However, the IGC raised its consumption figures to partially offset the rise in production. Global 2016-17 total grains carryover is projected to rise by 2 MMT from last month to 474 MMT (468 MMT in 2015-16). While global 2016-17 wheat carryover is projected 5 MMT higher than last month to 223 MMT (217 MMT in 2015-16), global 2016-17 corn carryover is projected down 3 MMT from last month to 205 MMT, equal to the previous season. IGC says global corn demand has the potential of rising above 1 billion MT for the first time in history.
Global 2016-17 soybean carryover was lowered 3 MMT from last month to 29 MMT, which is 5 MMT lower than the previous season. IGC trimmed the global 2015-16 soybean crop by 5 MMT from last month to 314 MMT due to further downgrades in South America."