IGC projects record output for corn, wheat and soybeans

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LONDON, ENGLAND — The largest corn harvest in history is among the reasons the International Grains Council (IGC) is forecasting record total grains production in 2020-21.

According to the IGC’s Grain Market Review, released Aug. 27, total global grains production will reach 2.230 billion tonnes this marketing year, up 50 million tonnes from the July forecast and 9% higher than the previous year (2.181 billion tonnes).

A record world wheat crop also is expected at 763 million tonnes, topping the previous mark of 762 million tonnes set last year.

Largely on an upgraded outlook for the United States, global soybean production is projected to set a record in 2020-21 at 373 million tonnes, up 8 million tonnes from the July forecast and 9% higher than last year’s total of 339 million tonnes.

Soybean exports are estimated to reach a peak during the recently completed marketing year.

“Tied to continued heavy shipments from South America, chiefly Brazil, the Council’s forecast for global soybean trade in 2019-20 is lifted to a peak of 163 million tonnes, the 7% year-on-year increase primarily stemming from bigger dispatches to China,” the IGC said.

Global rice production is projected to rebound by 2% year-on-year to a record 505 million tonnes in 2020-21, on bigger crops among leading exporters.

Total grains consumption is seen climbing by 41 million tonnes over the previous year to 2.222 billion tonnes, led by gains for feed (18 million tonnes) and industrial uses (12 million tonnes).

“Amid record supplies, corn demand is seen rising the most, up by 33 million tonnes year on year,” the IGC said.

The forecast for global grains stocks at the end of 2020-21 was revised upward by 5 million tonnes — mainly due to wheat — from the July report to 630 million tonnes.

The IGC Grains and Oilseeds Index increased by 3% month-on-month to its highest level in nearly two years.

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