Favorable weather leads to better prospects for wheat, corn
The June Grain Market Report from the International Grains Council says the outlook for grain production in 2014-15 has increased sharply, by 12 million tons. This is due to favorable weather, which led to better prospects for wheat and corn.
The report says total consumption is up slightly, with end-season grain stocks forecast to reach 412 million tons, up 3 percent year on year, and the most since the end of the 1999-2000 crop year.
Soybean production is projected to rise by 6 percent to an all-time high, boosted by expectations for record plantings in the United States and Brazil. Consumption is expected to rise 4 percent, led by demand from processors in China and the Americas.
Wheat and corn
Average wheat yields are expected to fall 2 percent from last year’s record, while the forecast is up by 5 million tons due to increases for China, the European Union and India. Supply and demand are expected to be balanced.
The 2014-15 corn crop forecast is up by 8 million tons from May, reflecting improved prospects in China. Inventories in China are growing and may account for almost half of the world total. U.S. markets were particularly weak, as strong ethanol demand and worries about flood damage provided only limited support, the report says.