Experts the USDA lowered the forecast of world production and stocks of corn

In the October balance the experts, the USDA once again lowered the forecast of world production and ending stocks for corn, primarily due to the US, but not as much as analysts had expected.

the Forecast of corn production in the U.S. decreased by 4.5 million tonnes to 373,95 million tonnes, while analysts estimated it at 376,5 mln t, which is still considerably higher than last year 345,9 million tonnes As in the quarterly report the evaluation of the initial stocks of corn reduced by 6.5 million tons to 50.7 million tonnes, although analysts expect that it will be slightly higher. Export forecast of corn was left unchanged, although the estimate of domestic consumption has decreased by 2.54 million tons due to reduced production of ethanol and feed. The forecast of ending stocks was reduced by 6.8 million tonnes to 55 million tonnes, which is a normal result for US.

In comparison with the previous report from the global initial stocks of maize decreased by 4.91 million tonnes to 304,24 million tons (320 million tonnes in 2019/20 MG), primarily due to reductions in the United States.

the Forecast for world corn production in 2020/21 MG decreased by 3.56 million MT to 1,1588 billion tons (1,112 billion tonnes in 2019/20 MG) due to reduced crop estimates in the United States by 4.5 million MT, and Ukraine by 2 million tonnes to 36.5 million tonnes, while local analysts have estimated it at 30 to 34 million tons, However such production cuts will be partially offset by increased harvest in Serbia and some countries of Africa.

Balances for Brazil, Argentina and China in comparison with September has not changed.

Forecast corn imports for the EU has been reduced by 1 million tons to 24 million tons, while China was left unchanged at 7 million tonnes, despite active purchases in the United States and Ukraine.

Evaluation of world exports of corn in 2020/21 MG reduced by 1.56 million tonnes to 184,5 million tonnes due to decline 1 million tons to 30.5 million tons, while local analysts have estimated it at 25-26 million tons.

the Forecast of world consumption of corn decreased by 2.1 million tonnes to 1,1626 billion tons (1,121 billion tonnes in 2019/20 MG), primarily due to the US and the EU, under pressure from high world prices and reduced demand due to coronavirus.

the Estimate of world ending stocks was reduced by 6.3 million tons up to 300.5 million tonnes, although a sharp reduction in the US reserves will be partially offset by their growth in some countries.

Despite the fact that the new report meets the expectations of the traders, the corn futures on Friday rose 2% to 156 $/t. However, further increase will limit the arrival of new crop in the Northern hemisphere and reduced demand due to the sharp rise of price to 200 $/MT FOB.