Farmers around the world are expect to expand corn plantings by 1 percent in 2016/17, including larger corn areas in the United States, the former Soviet Union, South America and Africa, says the International Grains Council. “A small increase in production is seen being entirely absorbed by higher use, but ending stocks are projected to recede only slightly and will likely remain in excess of 200 million tonnes,” said the IGC’s Grain Market Report.
If IGC’s preliminary expectations prove correct, it would be the third year in row that ending stocks topped 200 million tonnes and would keep the stocks-to-use ratio at a comfortable 20 percent or higher, which would keep prices at moderate levels. Global corn production was a record 1.016 billion tonnes in 2014/15. IGC says total grain production – wheat, rice and coarse grains – will exceed 2 billion tonnes this year for the third consecutive season.