Corn prices rose sharply after lowering its forecasts sowing in USA

Yesterday, the USDA published two reports that led to the rapid growth of stock exchange prices for corn, soybeans and wheat: on the remains of grain of the old harvest and the sowing area for new crop.

as a result of lower forecasts in sowing areas of maize in the US, prices rose the most, from 4% to 134,3 $/t for September futures and to kzt137. 8 $/ton for December.

USDA Experts believe that by 2020 maize will be planted 92 million acres, down 3% or of 2.31 million acres higher than the figure recorded last year, while analysts had estimated them at 94.1-95,2 million acres. However, as of June 16, 2.2 million acres remained unseeded.

Square maize harvest in 2020, the experts, the USDA was estimated at 84 million acres, which is 3% higher than last year's figure, but is significantly inferior according to the June report where they predicted at the level to 89.6 million acres. Accordingly, the gross yield can be reduced from 406 to 380 million tons.

If the predictions in sowing areas of maize supported prices, we report data on quarterly stocks increased pressure on the quotes.

According to the USDA, corn stocks in the U.S. as of June 1, has increased compared with the previous year by 1% to 5.22 billion bushels or 132,6 million tonnes, although analysts expect they will be reduced to 4.95 billion bushels, or 125,7 million tons.

Reduction in forecast corn production in the U.S. will increase the demand for corn from the new harvest in Ukraine and raise prices, which fell to 143-145 $/t for deliveries in the port in October-November.