IGC lifts grain estimates on record corn outlook

LONDON (Commodity Online) : The International Grains Council has lifted its estimate for global by 3 million tones to 1.808 billion, up 4.5 percent year-on-year.
The global organization attributed a record corn crop forecast for 2011/12 to the better outlook for global grain production.
However, IGC said stocks are expected to remain low. The deficit will lower stocks to a four-year low of 334m tonnes, representing 18.4% of consumption, down from 23% two seasons ago, when readier supplies accelerated a fall in grain prices.
The forecasts helped a rally in grain prices which took Chicago wheat for May back over $8 a bushel at one point, and saw London's May contract hit a record high of £222.00 a tonne.
However, the rally foundered as weather forecasts introduced drier weather into the outlook for major US corn areas, where chances had looked dim of getting sowings wrapped up anywhere near May 10, seen as the cut-off date after which yields suffer.
The IGC flagged the threats to wheat production in cutting by 1m tonnes to 672m tonnes its estimate for the world harvest in 2011-12
The IGC cut its global 2011/12 wheat forecast to 672 million tonnes, down 1 million tonnes from the previous monthly estimate.

(Source: http://www.commodityonline.com/news/IGC-lifts-grain-estimates-on-record-corn-outlook-38371-3-1.html)