BUENOS AIRES (Commodity Online) : Global corn output is expected to cross 800 million tones in 2009-10 harvest season.

According to US Department of Agriculture, Argentina and South Africa are expecting bumper production this season that will boost total output while trimming prices worldwide.

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The USDA in its global crop supplies report raised its global corn output forecast by 5.9m tones to 803.7m tones.

The revision reflected an increase of 3.8m tones to the harvest in Argentina, the world's second-biggest exporter of the grain, with South African production pegged 2.0m tones higher.

"Harvested area and yield are raised for both countries as abundant soil moisture and lack of stressful heat during the past month supported crops through critical stages of development," the USDA said.

The raises dwarfed a downward revision of some 500,000 tones to US corn production following a resurvey of farmers, to take account of a harvest heavily delayed by a wet autumn.

The revision, equivalent to 20m bushels, was significantly lower than the 70m-bushel change that analysts had expected.

Furthermore, its impact in shrinking year-end stocks was more than offset by weaker hopes for exports, "as larger foreign supplies increase competition".

American corn inventories will end 2009-10 at 27.2m tones, the USDA said, increasing its estimate by 2.0m tones.

Growers would feel the impact of the slacker market in their pockets, with US farm gate prices set to average $3.45-3.75 per bushel over the season, down $0.20 on previous hopes.

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