News from China alarmed the corn market
Data Chinese statistical agencies for the production of maize in the country over the past 11 years and forecast for the new season will significantly affect the world balance of corn.
In the monthly report of the National information center of grain and oil (CNGOIC) estimates the acreage of corn in the current season increased compared with the previous forecast by 20% to 42.3 million hectares, and production from 216 to 259 million tonnes.
Bureau of statistics of China revised its forecast for corn on the basis of data of the third agricultural census. It became clear why the Agency CASDE has not released official monthly report with estimates of production, as well as why within a year from the state reserves actively rasprodavalos corn, which auctions sold more than 100 million tonnes.
it is Expected that CASDE will publish the November report on production and stocks on Thursday, alongside the release of the new balance from USDA.
the increase in the valuation of production and stocks of corn in China against a background of increasing production in the U.S. could derail the prices of grain, as happened with the prices of soybeans after the introduction of China's import duties on U.S. soybeans.
China imports small amounts of maize, however, the transition to export in case of increase in production collapses in prices to multi-year lows. Experts believe this is an additional pressure on future negotiations between the U.S. and China for resolving trade disputes.
In Chicago futures for corn remained at the level of the Republic of Uzbekistan 146.3 $/t. it is Expected that today's report USDA will be reduced assessment of the productivity and gross side of corn in the U.S., and increased export forecast. Evaluation of corn production in Ukraine can increase by 1-2 million tons, However, the main intrigue is the data for China.