IGC forecasts record world corn and soybean production

By Jane Byrne contact

- Last updated on GMT

© GettyImages/Dmytro Diedov
© GettyImages/Dmytro Diedov

Related tags: Soybean, Maize, Corn, Brazil, China

The biggest corn harvest in history is expected for 2020/21, according to the latest analysis by the International Grains Council (IGC).

That maize bump is largely behind a projected 50m tons increase in total grains - wheat and coarse grains - production globally in 2020/21, to 2,230m tons.

The world wheat crop is also expected to be a new high, forecast the IGC in an August 27 released report​.

Above-average output is predicted for barley, sorghum, oats and rye as well.

“Larger feed use figures for maize and sorghum are mainly behind a 4m tons upgrade for projected total consumption, to 2,222m (2,181m) tons,”​ noted the IGC analysis.

Amid record supplies, maize demand is seen rising the most, up by 33m tons year on year. 

Grains IGC August 2020
International Grains Council Market Report Total Grains Supply and Demand

Grain stocks boosted

An 8m tons expansion of total grains stocks is foreseen at the end of 2020/21, to 630m tons, including accumulations of wheat (+14m) and barley (+3m), but the Council expects the fourth consecutive contraction of maize inventories (-12m).

Trade (Jul/Jun) is seen climbing by 1% year on year to 395m tons, with increased shipments of maize and sorghum, but smaller volumes of wheat and barley.

Global soybean output forecast higher

Largely on an upgraded outlook for the US, together with potentially bigger outturns in the southern hemisphere, world soybean production in 2020/21 is projected 8m tons higher, month on month, at a record of 373m, which is a jump of 10% year on year, predicted the Council.

Trade is predicted 3m tons higher than before, at a peak of 164m, a marginal year on year advance, it said.

“Underpinned by recovering feed sector demand in China, together with expected gains elsewhere amid improving economic conditions, world uptake [in soybeans] is projected to rise by 4% year on year. Inventories are also seen expanding but remaining short of the 2018/19 peak. Growth in global [soybean] trade could moderate but, at 164m tons, would be a new high, with US exports projected to rebound strongly.”

soybeans IGC

Chinese demand aiding Brazilian exporters

Meanwhile, s​oybean exports are set to hit new highs in the recently completed marketing year.

“Tied to significant growth in China’s soybean arrivals, world import demand in 2019/20 is seen rising by 11m tons year on year, to a record of 163m tons, with most of the increase absorbed by Brazilian exporters.”

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