IGC cuts world grain production by 3 million mt to 2.25b mt

The International Grains Council (IGC) cut its world grain production forecast for the 2022/23 marketing year by 3 million mt on Thursday, as extensive droughts across the EU harmfully affected the outlook for wheat, barley, and corn crops.

Overall wheat, coarse grains, soybean, and rice production outlooks were set at 2.252 billion mt, or 2% down year-on-year, which would be the first reduction in the last five seasons if realised.

Mainly the burden of those fears fell on corn and wheat, while rice production figures provided a contrast, with production forecasts improving on the bigger outlooks in Asia.

The wheat production forecast increased by 1 million mt compared to the previous report and amounted to 770 million mt, however, this is 11 million mt (1.4%) below last year's figures.

Corn production was cut by 1 million mt from the previous forecast to 1.189 billion mt, or 2.5% lower year on year.

Nonetheless, world stocks were unchanged from the previous report and amounted to 583 million mt, or 4% below last year.

Overall grain trade forecasts settled at 406 million mt, or 3.8% below last year, due to a drop in corn, and wheat trade.

Soybean outlook production in the 2022/23 marketing year decreased by 4 million mt to 386 million mt versus the previous report, however, it is still 10% above the last year.

The soybean trade forecast for the 2022/23 marketing year decreased by 1 million mt versus the last report but still settled at 165 million mt, 7% up year-on-year.

Rice contributed the final 518 million mt, unchanged versus the agency's last forecast, but up 3 million mt versus the previous marketing year.