(Updates with wheat production in second paragraph, country estimates in third.)
Aug. 30 (Bloomberg) -- World corn and wheat harvests will be larger than previously anticipated on improved prospects for crops from Europe to South America, the International Grains Council said.
The corn harvest will be about 945 million metric tons in the 2013-14 marketing year, up 0.3 percent from its Aug. 1 estimate and almost 10 percent larger than last year, the London-based IGC said in an e-mailed report today. Global production of wheat may be 691 million tons, 0.6 percent more than previously expected and 5.7 percent more than the last harvest, according to the report.
Global supplies of grain are expanding as crops in the U.S., the biggest corn grower and exporter, eastern Europe and Russia rebound from dry weather last year. Corn production in Argentina, the second-biggest shipper, may be 2 million tons higher than previously forecast at 25 million tons, while still below last year’s 30 million-ton crop. Argentine farmers begin planting next month. The IGC left its U.S. corn estimate unchanged at 350 million tons, 28 percent more than last year.
The forecasts reflect the “recovery from the previous season’s drought-damaged results,” the IGC said. “Against a backdrop of strong underlying demand and lower prices, trade is seen rising to a six-year high” for corn, it said.
The IGC increased its forecast for wheat output in the European Union, the world’s biggest grower, to 146.1 million tons, compared with 145.6 million tons estimated previously. That implies an 8.5 percent gain from last year. Canadian production at 30 million tons may be 3.4 percent more than expected earlier. The IGC also boosted its forecast for Ukrainian and Kazakh wheat output and cut Brazil’s outlook.
Total grain production may be 1.93 billion tons, up from the previous forecast of 1.92 billion tons and 8 percent more than last year, according to the report.
The global soybean harvest may be 280 million tons, 1.4 percent less than estimated Aug. 1 while 4.1 percent larger than the previous season. The IGC cut its outlook for U.S. production by 4.5 million tons to 88.6 million tons. Crops in the U.S., which will be harvested in the next few months, suffered from dry weather in the last two months.
--Editors: Dan Weeks, Sharon Lindores.