World Bank: corn production to hit a new record

While world corn production is expected to grow by almost 2 percent this season compared to 2019-20, the stock / use ratio will fall to 25% (2 percentage points less than last season) due to higher consumption growth. , estimated the World Bank.

This season runs from September 2020 to August 2021.

Also, the United States Department of Agriculture (USDA) forecasts that corn production in 2021 will reach a new record, with an increase of 3.7% year-on-year, largely thanks to increased production in China, the European Union, Ukraine and especially the United States.

At the same time, utilization in 2021/22 could grow by around 2%, supported by higher demand for feed and industrial applications.

The USDA projects corn trade to expand marginally in 2021/22 (July/June), with higher demand for imports from China still a primary driver, along with a likely increase in purchases from the European Union, Mexico and Turkey.

In addition, the USDA expects stocks (ending in 2021) to contract for the fourth consecutive season, down 2.7% year-on-year, with most of the reduction occurring again in China and more than offsetting potential increases in stock. European Union, South Africa and the United States.

World Bank

Corn, which is together with wheat and rice one of the most important cereals in the world, provides nutritional elements to humans and animals and is a basic raw material in the processing industry, with which starch is produced, oil and protein, alcoholic beverages, food sweeteners and, recently, fuel.

From the World Bank angle, agricultural prices, which are forecast to rise nearly 14% in 2021, are expected to stabilize in 2022.

Already the shortage of production of some food products, such as soybeans, palm oil and corn, has caused strong price increases.

However, the World Bank noted, most of the world markets for food products continue to be adequately supplied according to historical measures.

On May 25, the National Reform and Development Commission of China launched an Action Plan to reform the review and control mechanisms of commodity prices.

While the Plan aims to curb abnormal price fluctuations and guarantee price stabilization, the minimum purchase and target price policies for rice, wheat and corn will be maintained and improved.