LONDON (Dow Jones) -- The International Grains Council on Thursday lifted its forecast for wheat production in 2015-16, with favorable growing conditions set to contribute to the largest global grain stockpiles in 29 years.
"[Owing] to abundant supplies, there will likely be a further accumulation of end-season stocks ... to a three-decade peak," IGC said in its bi-monthly market report.
London-based IGC said wheat production will amount to 731 million metric tons tons, having forecast 726 million tons in its previous forecast in November.
IGC trimmed its forecast for overall grain production by four million tons to just under two billion tons, reflecting the impact of drought on the corn harvest in South Africa and India.
The forecast for grains consumption came in eight million tons lower at around 1.98 billion tons--still the second highest figure on record--amid lower projected demand for animal feed.
Reflecting the reduced consumption forecast, IGC lifted its forecast for the size of grain stockpiles to be carried over into the next marketing year by one million tons to 455 million tons, the highest in 29 years.
Looking ahead to the 2016-17 marketing year, IGC said harvest prospects remain "mostly favorable."