Global corn crop to drop further on low EU production

Global corn production is now expected to be at 833 million metric tons for the 2012–2013 harvest year, down from August's prediction of 838 million metric tons and 2011–2012's 875 million metric tons, according to the International Grains Council. The latest drop comes from a drop in the EU's corn production, now expected to come in at 55 million metric tons compared to an August prediction of 59.9 million metric tons.
Hot and dry weather damaged Europe crops even more than estimated, shrinking an already reduced global harvest from its July forecast of a record 917 million metric tons. This added to the worst U.S. drought in over 50 years, which has caused corn prices to rise 49 percent since mid-June on the Chicago Board of Trade, reaching a record $8.49 per bushel on August 10. “Demand is likely to fall given tight supplies and high prices, with both feed and industrial use expected to decline,” said the International Grains Council.
World wheat output was also revised down, at 657 million metric tons from 662 million metric tons in August, as dry weather harmed crops in the Black Sea region. Farmers harvested a record 696 million metric tons in 2011. In contrast, global production of soybeans could reach 256 million metric tons in the 2012–2013 season, up 8 percent from 2011–2012.