USDA once again surprised the corn market

the United States are the world's largest producer and exporter of corn and is considered a major tsenoobrazovanie on the world market of corn, therefore, experts are closely watching the forecasts for production and exports.

assessment of market analysts and experts, the USDA again, as in September, went into almost the opposite. In September, analysts were expecting a reduction in forecast corn production in the United States due to the August drought, but the USDA sharply raised its forecast of production from 6 million tons Before the release of a new report, analysts predicted a further increase in the yield estimation of maize and the growth of gross harvest by 1 million tonnes to 377,2 million t. However, experts USDA in the October balance of supply and demand adjusted preliminary, very optimistic forecasts of production, and reduced gross harvest of corn in the United States at 1.25 million tonnes to million tonnes. 375,37 it also reduced the estimation of domestic consumption and increased export forecast by 1.9 million tonnes to 62,87 million tonnes, 1 million tonnes will exceed the level of last season. Quite strange is the increase in balances of corn at the beginning of the season almost 4 million tonnes compared to the September estimate.

the Forecast for world corn production in 2018/19МР reduced only to 0.7 million tonnes, and forecasts of corn production in South America has been left unchanged, although local analysts from the Agency Conab believe that Brazil will gather for 89.7 and 91 million tonnes of maize against 80.8 million tons in 2017 and 94.5 million tonnes projected by the USDA.

the production Forecast for Ukraine did not change, whereas Russia has reduced.

the First reaction of the market to a new report yesterday was the increase in corn futures in Chicago by 2.5% to 145,6 $/T. But today's trading will show the reaction of the traders after analysis of the report data.