Experts believe that the USDA report for corn will have a bearish tone

the world's Leading analytical Agency in anticipation of the release of the June report, the USDA published their own forecasts, which increased the estimate of the initial stocks of corn and slightly reduced the estimate of production in South America. This will increase pressure on prices, even though rising demand for corn in the US side manolovo industry and meat industry.

According to the average estimate by The Wall Street Journal, corn production in the U.S. will remain at the level of the may forecast of 405 million tons in Brazil will be reduced by 1.45 million tonnes to 99.6 mln t, in Argentina will not change. Forecast initial stocks of corn in the U.S. in 2020/21 MG increased by 1.4 million tonnes to 54.7 million tonnes due to weak exports in the current season.

Despite the recovery in ethanol production, the corn futures in Chicago yesterday fell to 130,44 $/t

According to the Association of EIA, ethanol production in the U.S. for the week rose by 9.4% to 837 thousand barrels/day, which corresponds to a consumption of 2 million tons of maize a week. After the introduction of quarantine ethanol production in the U.S. declined by almost half, but by 10 weeks it recovered, and soon may reach the USDA projected a level that corresponds to a consumption of 125 million tons of corn per year.

Brazil, as progress was made harvesting corn second crop increases the export volume. For the 1st week of June exported 38,613 thousand tons of maize, which is 54% higher than the total exports of may, although significantly inferior to the previous year. Daily shipments of corn in June 2020, on average 7,722 thousand tons, whereas in June 2019 reached 62,896 thousand tons.

the strengthening of the Brazilian real reduces the competitiveness of Brazilian corn prices, which are higher than U.S. and Argentine offers for 160 $/t 150 $/t FOB, respectively.

Export demand for Ukrainian corn of the old crop is almost absent, because the prices remain at a high level of $180/MT FOB, while demand for shipments in Vietnam is 180 $/t C&F.

Warm weather with moderate rainfall will enhance prospects for crop and condition of the corn crops, which have lagged behind in development because of the may cool.