Global corn supplies forecast to reach 128.1 million tonnes by end of summer, up nearly 1 million tonnes from December estimate, USDA says; global corn production expected to drop at least 4 million tonnes in 2011/2012 amid drought in South America

LOS ANGELES , January 13, 2012 () – The U.S. Department of Agriculture has raised its forecast for worldwide corn supplies by the end of the summer to 128.1 million tonnes, which constitutes an increase of almost 1 million tonnes from its estimate in December, The Wall Street Journal reported Jan. 12.

Analysts had predicted that the worldwide 2011-2012 corn production forecast would fall by at least 4 million tonnes crop following losses in South America due to drought.

The USDA predicted that China and Ukraine would have a larger supply of corn, offsetting crop losses in Argentina.

The USDA also reported the 12.36 billion bushels of corn were produced in the U.S., slightly more than the agency forecast in December.

Most traders had been expecting the U.S. corn harvest would be less than predicted following spring flooding and a July heat wave in the Midwest.

In the wake of higher wheat production in Brazil, Kazakhstan and Russia, the USDA increased its estimate for the worldwide stockpile of wheat.

The USDA has raised its forecasts for U.S. exports of both corn and wheat.

Despite raising its estimate for domestic soybean production, the USDA predicts that both the annual soybean crush and exports will be lower than previously expected, which will likely boost U.S. soybean stockpiles to 275 million bushels, up from an earlier forecast of 230 million bushels in December.

The primary source of this article is The Wall Street Journal, New York, New York, on Jan. 12, 2011.

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