The International Grains Council (IGC) Grain Market Report #426 released on September 28th 2012, documents the projected world supply for corn and soybeans. Despite a temporary decline in cost for corn and soybeans the intermediate outlook is for continued high demand relative to supply which will exert upward pressure on commodity prices.
The IGC predicts a 12% decline in stocks of corn at the end of the current harvest. Year-over-year production of corn worldwide will be reduced by 5%. There may be a moderating effect on price resulting from reduced demand.
Soybean production is expected to be supported by output from Latin America, although ending stocks will be reduced by 5% year-over-year.
The critical values for corn and soybeans in million metric tons, as extracted from the IGC Report, are tabulated below:-