"Larger-than-expected yields in North America, much of Europe and the CIS increase the 2004 world wheat production forecast by eight million tonnes from last month to a record 614 million, 60 million more than last year," the IGC said in its latest monthly report.
The IGC lifted its forecast for world coarse grain output in 2004/05 by 14 million tonnes from its previous figure to 962 million tonnes, sharply higher than the 910 million tonnes it said was produced in 2003/04.
"Continued favourable weather in the US corn belt should result in record yields: the crop is now forecast at 277 million tonnes," the IGC report said.
"Although dry conditions earlier in the summer in France (the EU's leading maize producer) affected crop development more than previously thought likely, the forecast EU total remains much above last year's, at 52 million tonnes," it added.
"A further improvement, to 120 million tonnes, is predicted in China's harvest."
An IGC spokesman said: "There is strong animal feed consumption in the US and developing countries, and the US is increasingly using maize for ethanol production."