IGC cuts forecast for 2020/21 global corn crop, China demand on the rise

Maize (Corn)

World

Sustainability & Environmental Impact

Market & Price Trends

Shelly Chen

Published Nov 26, 2020

The International Grains Council (IGC) on November 26, 2020 cut its forecast for global corn (maize) production in the 2020/21 season, while doubling its projection for China's corn imports.

In its monthly update, the inter-governmental body reduced its global corn crop forecast by 10 million tonnes to 1.146 billion tonnes mainly due to diminished outlooks for crops in the United States, Ukraine and European Union.

The corn crop in the United States, by far the world's top producer, was pegged at 368.5 million tonnes, down from a previous forecast of 373.9 million and bringing it into line with the U.S. Department of Agriculture's current forecast.

The EU's corn crop forecast was cut to 60.1 million tonnes from 62.6 million, driven by a sharp downward revision for Romania's crop to 7.1 million tonnes from 10.4 million seen previously.

Drought has dented the outlook for corn production in both Romania and Ukraine in 2020.

Ukraine's crop was pegged at 30 million tonnes, down from a previous forecast of 33 million.

The IGC also raised its forecast for China's corn imports in the 2020/21 season to 16 million tonnes from a previous projection of 8 million tonnes.

China has been aggressively buying corn partly due to rising feed grain demand as the country's swine industry recovers from a deadly pig disease.

The IGC raised its forecast for 2020/21 world wheat production by a modest 1 million tonnes to 765 million tonnes.

China's wheat import forecast was raised slightly to 7.8 million tonnes from a previous projection of 7.3 million