THE International Grains Council forecast 2008-09 world grain output at 1.77 billion metric tons last night, up 16 million tons from last month's forecast.
This is up 81 million tons on the year.
The majority of the rise in IGC's world grain output forecast stems from higher wheat and corn production estimates.
IGC expects wheat production to reach 683 million tons in 2008-09, a rise of 7 million tons from last month's forecast and up 12 per cent on the year.
IGC expects corn production to reach 773 million tons in 2008-09, an increase of 2 million tons from last month's forecast.
"As northern hemisphere harvesting neared completion, many major producers' grain yields exceeded expectations," IGC said in a statement."
"The better-than-expected global harvest boosted global output figures despite further deterioration in prospects in Argentina and Australia," IGC said.
Although wheat harvests are estimated to rise 12 per cent on the year in 2008-09, wet weather has increased the availability of lower quality wheat, which is expected to crowd out corn used for animal feed, IGC said.
Global wheat consumption is expected to rise 6 per cent, while the amount of traded wheat should rise 6.4 per cent, or 7 million tons, on the year in 2008-09 since Iran and Saudi Arabia are expected to import more wheat to compensate for their poor harvest.
Meanwhile corn production is expected to fall 1.8 per cent on the year to 773 million tons in 2008-09, partly due to Argentina's decision to shift some wheat acreage into soybean acreage and partly because of the negative effects of dry weather in Argentina.
Consumption, however, is expected to increase 1.9 per cent on the year in 2008-09 to 790 million tons, prompting corn stocks to fall 14 per cent, or 14 million tons, on the year to a five-year low of 86 million tons.
Dow Jones Newswires
