In the report the USDA increased the forecast of the production and stocks of corn
July balance USDA corn surprised traders who expected this season to the reduced acreage, lower yields and gross harvest of corn in the United States.
However, in comparison with the previous report, the area sown under maize in the US increased by 1.9 million acres to 91.7 million acres, the estimated yield left at 166 bushels/acre or 10.4 t/ha (with an average estimate of analysts 164,9 bushels/acre), and the crop forecast has increased by 4.95 million tonnes to 352,44 million tonnes against expert expectations on the level 343 mln t. in addition, due to the reduction in the rate of export of grain of the old crop estimate of the initial stocks of corn in the U.S. in 2019/20 Mr increased with 55,77 to of 59.45 million tons.
the Forecast of world consumption of corn increased from 1,099 to 1.105 bn tonnes, compared with 1.12 billion tons in the past MG. The global initial stocks increased by 3.37 million tonnes to 328,75 million tons, and the ending was 8.4 million tonnes to million tonnes. 298,92
After the publication of the report, December corn futures in Chicago rose 1.7% to 176 $/t. This suggests that investors are confident in the further growth of prices and reduction of production. As final data on sown areas in the United States experts USDA they promised to release in the August report, then the market will see a significant correction of the balance.
forecast For Ukraine corn production increased by 1 million tons and export 1 million tons to 28 million tons For China, the balance remained unchanged.
in Anticipation of the publication of the USDA report MSG China has reduced the forecast of maize production in the country by 1.5% from 257 to 253 million tonnes, while Brazilian Agency Conab increased its estimate of the corn crop in Brazil to 98.6 million tons versus the projected 101 million USDA T.