The world corn harvest will fall more than expected a month ago after hot and dry weather damaged crops in Europe, the International Grains Council forecast.
Corn production will fall to 833 million metric tons in the 2012-13 crop year from 875 million tons the previous year, the London-based council wrote in an e-mailed report today.
Corn prices have surged 49 percent since mid-June on the Chicago Board of Trade, touching a record $8.49 a bushel on Aug. 10, as the worst U.S. drought in a half century and hot and warm weather in southern Europe and Ukraine cut yields.
“Demand is likely to fall given tight supplies and high prices, with both feed and industrial use expected to decline,” the IGC said.
The council last month forecast a corn harvest of 838 million tons, already reduced from a July 2 outlook for a record crop of 917 million tons. EU corn production will be 55 million tons, down from 59.9 million forecast last month, it said.
World wheat output was estimated at 657 million tons, down from 662 million forecast last month, as dry weather harmed crops in the Black Sea region, the IGC said. Farmers harvested a record 696 million tons last year, according to the council.
Global production of soybeans may be 256 million tons in the 2012-13 season, up 8 percent from a year earlier, as South American output rebounds, the IGC said.
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