MercoPress. South Atlantic News Agency

Relief: USDA hikes world grains production estimates

The US Department of Agriculture corrected upwards its estimate of world production of grains for 2008/09 which should total 2.190,61 million tons, up from the previous 2.164,97 million tons.

The latest August estimate is made up of 670.75 million tons of wheat, 1.089,11 million tons of forage (including corn) and 430,75 million tons of rice. Oil seeds should sum up to 416 million tons. The US corn crop is estimated in 331.58 million tons, which is 5.43 million tons more than the July estimate. Stocks were estimated in 38.5 million tons which is 350.000 tons more than last month. However at world level, crop is estimated in 771.5 million tons or 5.6 million tons below the 777.1 million tons of July with stocks at 102,23 million tons compared to 108,36 million tons in July- The lesser production is attributed to smaller than expected crops in the European Union which drops from 55.23 million tons to 48.43 million tons. This means the EU will have to import 6 million tons instead of the 3.5 million tons estimated in the previous report. Argentine and Brazilian corn crops are estimated in 24 and 50 million tons, unchanged from July. Regarding soy, the report shows that stocks from the 2006/07 crop in the US have fallen to 15.66 million tons from 16.34 million tons in July. The estimated US crop is 71.44 million tons, unchanged from the previous report. However stocks have further fallen to 5.99 million tons, which is 680.000 tons below. World soy harvest is estimated in 221.62 million tons, down from July's 222.05 million tons. World stocks fell slightly from 51.87 million tons to 51.63 million tons. Argentina and Brazil's soy harvests are estimated in 47 and 61 million tons.