Corn prices were kept from falling after the release of the "bearish" forecast from the USDA
the corn Futures in Chicago were down in the week before the April balance of supply and demand from the USDA, but yesterday I resisted from falling further despite the forecast of growth of production and residues of maize in the world and in USA. The reason for this behavior of traders was that the report was almost in line with expectations of traders and their preliminary estimates.
After the release of the report of the may and the December prices of corn fell 1.1% and 1.5%, but then the end of the session returned to the previous level or even slightly increased compared to the previous day to 145,74$/t 153,9 and$/ respectively. Such speculative gains against the fundamental factors are of short duration, after which still comes lower prices.
contributing to the price of steel purchases of Korean refiners several batches of maize with a may delivery at a price of approximately 212 $/t CFR in November at a price of about 188 $/t CFR.
In an April report, the experts, the USDA increased the forecast of world maize this season at 6.2 million tons to 1,107 billion tons, which will lead to increased carryover of 5.5 million tonnes to 314 million tonnes.
As expected, the experts increased the forecast of corn production for Argentina by 1 million tons to 47 million tons in Brazil by 1.5 million tonnes to 96,0 million tons. Also the forecast of production in the EU was adjusted to 60,88 to 63 million tons.
World consumption of experts left unchanged, while the forecast consumption in the USA decreased by 3.2 million tonnes in the EU increased by 2.5 million tons. Forecast of corn exports in the world increased by 1.2 million tons due to the growth of exports from Brazil by 2 million tons to 31 million tons from Argentina by 0.5 million tons to 29.5 million tons and from Ukraine by 0.5 million tons to 29.5 million tons, and for the U.S., the forecast of corn exports once again substantially reduced by 1.9 million tons to 58,42 million tons.
Reducing forecast exports and consumption of corn will increase carry-over stocks in the U.S. by 5.1 million tonnes to 51.7 million tonnes.
Increased consumption of maize in the EU will lead to higher corn imports by 1 million tons to 22.5 million tons, due to the low price of corn compared to feed wheat.
report Data show that in the short term, the decline in demand and the increase in planting acreage and production forecasts of corn of the new harvest will continue to pressure prices.
