Tightening World Coarse Grain Picture

WASHINGTON - Mar 9/07 - SNS -- International coarse grain production for 2006-07 is 500,000 metric tons (MT) lower than thought because larger crops in South America were more than offset by lower coarse grains production in South Africa and Australia, according to the latest USDA supply and demand updates from the World Agricultural Outlook Board.

Argentina corn production is raised 500,000 MT to 21.5 million, and Brazil corn production is raised 2.0 million MT to 48.0 million. Production is expected to be a record in both countries as excellent growing season weather is reflected in higher yields. Corn area for Brazil's winter crop is also expected to be higher as producers respond to high corn prices with increased planting.

South Africa corn output is lowered to 7.0 million MT, down 2.5 million from last month as drought and heat during February sharply reduced production prospects. Australia sorghum, oats, and corn production are all lowered as drought affected these spring planted crops. Coarse grain production in India is lowered as a reduction in millet is only partly offset by an increase in corn. The Philippines corn production is raised this month.

World coarse grain consumption is raised slightly this month. An increase in corn consumption is nearly offset by lower millet, sorghum, and oats consumption.

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