IGC cuts world grain production by 1 million mt to 2.3b mt

The International Grains Council (IGC) cut its world grain production forecast for the 2021/22 marketing year by 1 million mt on Thursday, as South American drought fears continue to slash production outlooks.

Overall wheat, coarse grains, soybean and rice production outlooks were set at 2.29 billion mt.

While the burden of those fears fell on corn and soybeans, wheat production figures provided a contrast, with production forecasts improving on the bigger outlooks for Australia and Argentina.

The wheat production forecast increased by 4 million mt compared to the previous report to hit 781 million mt, or 1% up from last year's figures.

But corn production was cut by 5 million mt from the previous forecast to 1.207 billion mt, or 6% higher year-on-year which meant that the higher wheat production figures could not compensate for the loss to corn, barley, and oats.

Nonetheless, world stocks were increased by 1 million mt from the previous report to 601 million mt, or 0.1% below last year.

Overall grain trade forecasts settled at 423 million mt, or 1.1% below last year, due to a drop in corn, barley, and oats trade.

Soybean production in the 2021/22 marketing year was sharply decreased by 12 million mt to 368 million mt versus the previous report, however it is still 1 million mt above the last year.

The soybean trade forecast for the 2020/21 marketing year decreased by 1 million mt versus the last report but still settled at 167 million mt, 4% up year on year.

Rice contributed the final 511 million mt, down 2 million mt versus the agency's last forecast, but up 3 million mt versus the previous marketing year.