The latest monthly World Agricultural Supply and Demand Estimates report of the US Department of Agriculture (USDA) projects a reduction in the 2008 US corn crop by 10 per cent from last year due to lower expected yields and area. The report states that the reduction reflects slow planting progress, slow crop emergence and persistent, heavy rainfall across the Corn Belt. Moreover, the recent torrential rainfall is expected to reduce plant populations and nitrogen availability, particularly for corn planted after mid-May. US corn stocks are projected to be the lowest since 1995/1996, which will increase prices.

    Global corn production was reduced by 1.8 per cent from last year due to the lower US corn crop, which was partially offset by increased production in Brazil, China, the Philippines, the Russian Federation and Ukraine. Global corn stocks were estimated to be about 14 per cent lower than last year. USDA lowered its estimate of Myanmar's rice crop by 0.6 million tonnes to 9.4 million tonnes owing to lesser planted area and an expected decline in average yield as a result of damage from Cyclone Nargis in May. (June 19)

Editor Kong Yan