The International Grains Council (IGC) has adjusted its 2015/16 crop and demand estimates for wheat, corn and soybeans only slightly. What is more, the adjustments largely offset one another, meaning that virtually nothing has changed as far as the anticipated market balances and ending stocks are concerned.
According to the figures, the global wheat market is still expected to show a supply surplus of 8 million tons. The 2 million ton reduction in ending stocks is attributable to a downward revision of beginning stocks.
"At 209 million tons, the global wheat stocks envisaged at the end of 2015/16 are still ample. At 4 million tons, the corn supply deficit is slightly higher than previously predicted. Ending stocks look set to total 200 million tons, which is 1 million tons higher than in the previous forecast", says Commerzbank.
Once again, this is due to somewhat higher beginning stocks. Global supply of soybeans is still to exceed global demand by 2 million tons, while ending stocks are still expected to total 49 million tons. In addition, the IGC looked ahead to the 2016/17 winter wheat crop, saying that planting is well advanced. Although the acreage is likely to be somewhat lower than last year, it should still be above the average of the past five years, added Commerzbank.
