Corn and Wheat World Production

The latest USDA Corn Outlook shows a month to month decline in global production and changes to the U.S. balance sheet. That despite Canada’s corn crop is suppose to be 10 percent more than the November estimates. World Agricultural Outlook Board Chair Seth Meyer says the decline is a million metric ton decrease in global production.
Meyer: “Because we had a 1.5 million metric ton decline in Indian crop on a lack of monsoon rainfall impacting yields in area. Then also the South African crop down 750,000 metric tons this month on what we are seeing is observed dryness already.”
Other corn supply and demand balance sheet adjustments this month include a decrease in export forecast leading to more ending stocks for 2015-2016.
Production forecasts for wheat were up this month for Canada and Europe which means more wheat added to another global production record — the third consecutive year of a record setting world wheat crop. The main driver Meyer says is increase of the Canadian crop production of 6 percent over the previous month.
Meyer: “That is the information coming out of the Canadian government and we increased the European crop 400,000 metric tons again this month. It is a record and it has gotten bigger for several months in a row.”
Export numbers for wheat are at a four decade low due to competitive issues of the strength of the U.S. dollar and big supplies in competitive countries.