In the new season, the USDA expects a record corn crop in the United States and in the world

yesterday Released the may WASDE report high projections of corn exports from the U.S. to 2019/20 Mr and forecasts record corn production in 2020/21 MG in the United States and the world once again surprised market participants.

Despite the expectations of analysts forecasts of corn production in 2019/20 MG for Brazil and Argentina was left unchanged, while the estimate of world consumption has reduced by 9.84 million tonnes to 1120,95 million tons, causing world ending stocks will grow by 11.56 million tons to a record 314,73 million tonnes, although analysts predicted their level 307,5 million tons.

the Forecast of corn exports from the U.S. unexpectedly increased by 1.3 million tonnes to 45,09 million tonnes, although export growth significantly inferior to last year, and the forecast of consumption only decreased by 2.16 million tonnes, while recently forecast corn processing for ethanol in the current season was reduced from 138 to 125 million tonnes.

production Outlook of corn in 2020/21 MG in the US increased by 59,24 million tons to a record 406,29 million tonnes, whereas the world - to record 1186 million tonnes, 72 million tonnes will exceed the level of the current season. While analysts had estimated production in the United States at 397 million tonnes, and in the world – in 1150 million tons For Brazil, the forecast of production increased 5 million tons to 106 million tons, for Ukraine – by 3.11 million tonnes to a record 39 million tonnes (ProAgro estimates his 37,3 and APK-inform at 35.1 million tons), Mexico, 3 to 28 million tons, Canada – 2.23 to 15.6 million tonnes, the EU – 2 to 68.3 million tons.

Forecast world consumption of corn in 2020/21 MG in comparison with the current season increased with 1120,9 to 1161,96 million tons on expectations of a quick economic recovery and demand for corn, which looks strange against the background of the epidemiologists about the new wave Covid-19 in autumn and winter.

even in the case of such an optimistic increase in the consumption of world ending stocks of corn in 2020/21 MG will increase in comparison with the previous year to 24,98 million tons to a record 339,62 million tons.

global import of corn will increase by 4 percent to 176.2 million tonnes, in particular in the EU by 1.5 million tons to 23 million tons, Egypt – 1.1 to 11 million tons, Mexico – 1 to 18.3 million tons, Iran – 0.5 to 10 million tons, Morocco – 0.5 to 3.5 million tons, Vietnam – 0.5 to 11.5 million tons.

export Forecast of corn in 2020/21 MG increased by 7.6% to 182,25 million tons, in particular, for the United States – by 9.52 to 54.61 million tons, Brazil – 2 to 38 million tons, Ukraine – on 1 to 33 million tons.

the Increase in exports should significantly reduce corn prices to encourage buyers to increase the purchase of grain on the background of the fall of the economies of most countries through quarantine restrictions. It is expected that in 2020/21 MG USA will resume consumption of corn for processing into ethanol to 132 million tons, and fodder – up to 153,67 million tonnes (144,78 million tonnes in 2019/20 Mr), even visiting meat processing plants.

Analysts believe that 10-30% of people after the completion of the quarantine will continue to work remotely. In particular, companies Facebook, Google and Microsoft reported that some workers will return to the offices in early summer, and most will work from home until 2021. And even after the opening of the offices, the employees themselves will choose to go back there, will continue to work at home.

Therefore, the hopes for a quick recovery in demand for automotive fuel at the level of last year are not great