Maize crop outlook cut
London, September 22, 2011
The International Grains Council on Thursday cut its forecast for global maize production in 2011/12, reflecting diminished prospects for the US crop.
It also trimmed the outlook for consumption as high prices begin to curtail demand.
"With international prices (for maize) likely to remain strong against a backdrop of tight US supplies, growth in world demand will be lower than in recent years," the IGC said in a monthly update.
Prices for US corn (maize) futures rose to an all-time high of nearly $8 a bushel in June and remain far above levels traded in 2010 despite a recent pullback driven by a gloomy economic outlook.
The IGC cut its forecast for the 2011/12 US maize crop by 10 million tonnes to 315.0 million tonnes, now below the prior season's 316.2 million.
Global maize production in 2011/12 was cut less sharply by 4 million tonnes to 845 million, still a record and up from 826 million in 2010/11.
"Despite a further reduction in US crop prospects, larger out turns in most other major producers are forecast to lift world output by 2 percent," the IGC said.
Maize stocks at the end of the 2011/12 season were put at 119 million tonnes, marginally above a previous forecast of 118 million but down from 127 million a year earlier. - Reuters