LONDON (Reuters) - World wheat production could decline by 2 percent in 2018/19, leading to the first drawdown in stocks in six years, the International Grains Council (IGC) said on Thursday.
The IGC's initial projection for the 2018/19 world wheat crop was 742 million tonnes, down from an upwardly revised 757 million in the previous season, it said in a monthly report.
"With sustained growth in consumption, the first stocks contraction in six years is possible, mainly in the major exporters," the IGC said.
The inter-governmental body forecast that wheat consumption in 2017/18 would total 744 million. It did not provide a projection for 2018/19.
World wheat production in 2017/18 was raised by 8 million tonnes to 757 million, boosted by improved outlooks in Russia, Canada, Argentina and Australia.
The IGC also increased its forecast for 2017/18 global corn (maize) production by 14 million tonnes to 1.054 billion tonnes, partly reflecting upward revisions for the European Union, China and Nigeria.
Global corn stocks at the end of the 2017/18 season were seen at 322 million tonnes, sharply up from a previous forecast of 206 million tonnes.
The IGC said the revision mainly reflected adjustments to historical figures for corn stocks in China.
World soybean production in 2017/18 was seen at 349 million tonnes, slightly up from a previous forecast of 348 million tonnes but still below the previous season's 350 million tonnes.
"With improving prospects in Brazil's outturn more than offsetting marginal downgrades for Argentina and the USA, the 2017/18 world soybean production forecast is lifted," the report said.
(Reporting by Nigel Hunt; Editing by Jason Neely and David Goodman)
