IGC experts raised their forecast for global corn production in my 2021/22 to a record 1.201 billion tons

Higher production forecasts due to favorable weather in the Northern Hemisphere continue to lower corn prices on stock exchanges and physical markets.

In a new report, IGC experts raised their forecast for global corn production in 2021/22 MG by 9 million tons to a record 1.201 billion tons, which is 70 million tons higher than in 2020/21 MG. However, due to an increase in the consumption forecast by 2 million tons to 1.201 billion tons, the estimate of Final reserves was increased only by 3 million tons to 267 million tons, which will correspond to the level of the current season and will be 31 million tons lower than in my 2019/20.

Yesterday, on the Chicago SWOT, July corn futures fell 1.7% to.257/ton, while December futures remained at. 211/ton, despite the forecast of heavy precipitation in the Midwest of the United States over the next 5-7 days.

The rate of corn harvesting in Brazil is 5-6% lower than last year. In the country, corn is harvested only on 2-3% of the area, while in Argentina it is already on 47.6%, and BAGE experts leave the production forecast at 48 million tons.

Export sales of old – crop corn from the United States for the week amounted to 216.3 thousand tons, new-crop-310.8 thousand tons, which is 12% higher than the previous week. The volume of sales of the new crop amounted to a record 15.68 million tons for this period, which is 332% higher than last year's figure.

The actual export of corn from the United States for the week amounted to 1.67 million tons, and in general in the season reached 56.26 million tons, or 77.7% of the USDA forecast for the current season.

In Ukraine, prices for corn of both the old and new crops are declining following the prices of wheat and against the background of good weather, which contributes to the formation of the crop. SovEcon experts increased the forecast of the corn harvest for Ukraine by 1.5 million tons to 38.3 million tons.

Prices for the supply of new crop corn in the port in October – November decreased to 2 220-225/ton, which is lower than the level of prices for barley and wheat. However, demand prices for old-crop corn remain at порту 260/ton in the port, but the number of buyers decreases as contracts are fulfilled and terminals switch to accepting new-crop barley and wheat.

On the Chicago Stock Exchange, October futures for Ukrainian corn after the release of the USDA report from June 9 fell from 2 272/ton to червня 239.5/ton, and now they are 1 10/ton lower than prices for Black Sea wheat.