World soybean and corn production forecast to increase for 2018/19

UK – World corn production is set to reach 1.076 billion tonnes in the 2018/19 crop season, reflecting a 3% increase from 1.047 billion tonnes estimated for the 2017-2018, according to Jan 24 report by the International Grains Council.

The Grain Market Report showed that world corn consumption would increase by 37 million tonnes to 1.109 billion tonnes in the year, compared to 1.072 million tonnes in 2017-18.

World corn ending stocks are estimated at 271 million tonnes, up 5 million tonnes from the November outlook but down 33 million tonnes, or 11%, from 304 million tonnes in 2017-18.

The council has lowered forecast for 2018/19 world soybean production in regard to figures it released in November.

World soybean production for the year is estimated at a record 363 million tonnes, down 4 million tonnes from the November projection and up 22 million tonnes from 341 million tonnes in 2017-18.

The lower forecast was attributed to continued hot, dry weather in Brazil where harvesting of the crop is underway.

Brazil is well behind the United States in soybean production, but according to oilseeds crusher group Abiove, it is set to become the world’s largest producer of soybeans this year.

The group estimated that U.S. is expected to harvest 116.48 million tonnes of soybeans later on in 2018, falling short of Brazil’s estimated collection of 117 million tonnes for its crop year.

Brazil’s position lies in the ability to expand planted area estimated at 1.2 million-1.7 million acres per year.

With the trade quandary between US and China, world soybean consumption in 2018 is forecast at 353 million tonnes, the lower rate attributed to demand in China.

The IGC forecast China’s soybean consumption in 2018-19 at 105.2 million tonnes, down 4 million tonnes from the November projection and down 3.4 million tonnes from 108.6 million tonnes in 2017-18.

World trade in soybeans is set to reach 152 million tonnes in 2018/19, impacted by lower appetite for the grains in China.

China’s soybeans imports are forecast at 87.5 million tonnes during the period, down 4.5 million tonnes from 2017-18 and down 9.4 million tonnes from a record 96.9 million tonnes in 2016-17.

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