IGC cuts forecasts for 2019/20 world corn, soy crops

The International Grains Council (IGC) cut its forecast on June 27 for world corn and soybean crops in the 2019/2020 season after heavy rains disrupted plantings in the United States.

The inter-governmental body said in a monthly update it had cut its global corn crop forecast by 23 million tonnes to 1.095 billion tonnes "largely owing to a difficult start to the growing season for US maize (corn)."

The IGC forecast a US corn crop of 333.5 million tonnes, down from a previous forecast of 362.4 million and the prior season's 366.3 million.

An improved outlook for 2019/20 corn crops in the European Union (67.0 million from 64.4 million) and Ukraine (32.6 million from 31.0 million) helped to limit the extent of the decline in global production.

Global stocks of corn at the end of the 2019/20 season were forecast to fall to 271 million tonnes, down from 319 million tonnes a year earlier.

The council said it had also cut its forecast for global soybean production in 2019/20 to 349 million tonnes from a previous projection of 358 million also driven by a downgrade for the US "where crop weather has been very challenging."

"Inventories (of soybeans) are predicted to tighten, mainly on a contraction in the major exporters, albeit remaining above average," the IGC said, putting global soybean consumption in the 2019/20 season at 358 million tonnes.

The IGC nudged up its forecast for 2019/20 world wheat production by 3 million tonnes to 769 million tonnes reflecting upward revisions for India, the EU and Ukraine.

Global stocks of wheat at the end of the 2019/20 season were forecast to rise to 275 million tonnes, up from 263 million tonnes a year earlier.