World corn output dropped
The International Grains Council Thursday reduced its estimates for world corn and wheat production in 2012-13 due to the effects of drought on crops across the northern hemisphere, particularly in the U.S. and Russia.
The London-based body said its forecast for global corn output had been cut by 26 million metric tons to 838 million tons, mainly due to a reduction of 25 million tons for the U.S. crop.
It added that world stocks are forecast to fall to a nine-year low, including a particularly steep decline in the major exporters, and although the next season's crops in Brazil, Argentina and South Africa may be large, harvests are still several months away.
Meanwhile, the IGC said it had also trimmed its world wheat production estimate by 3 million tons, to 662 million tons, with Russia's output seen down 4 million tons at 41 million tons.
In 2010 a severe drought and widespread wildfires resulted in a wheat harvest of around that level which contributed to an export ban. The Russian government has said it has no plans to repeat such a ban this year.
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August 23, 2012 09:47 ET (13:47 GMT)