Raising forecast for global grain production as high price encourages plantings

According to Vietnam Industry and Trade Information Center, Ministry of Industry and Trade, in the monthly update on May 28, the International Grains Council (IGC) raised its forecast for global grain production in the 2021/22 season as high prices encourage more plantings..

Specifically, the IGC saw total grains production at a record 2.292 billion tonnes, up 5 million tonnes from its prior projection.

Grain prices have risen sharply this year with Chicago corn futures climbing to an eight-year high this month. IGC said that higher grain prices is expected to encourage more plantings, world grain output in the 2021/22 crop year is forecasted to increase by 6% year-on-year to a  new peak.

The upward revision was driven partly by improved crop outlooks for India (158.1 million tonnes vs 155.9 million seen previously) and Australia (39.7 million vs 38.4 million).

The IGC raised its forecast for global corn production by two million tonnes to 1.194 billion tonnes, well above the prior season's 1.134 billion while wheat production was kept at 790 million tonnes, up 774 million in 2020/21.