The statement of trump on China collapse of corn prices

on Friday, the market was expecting the release of the July WASDE balance where there should be a reduced assessment of corn production in the United States and ending inventory that have not had a significant impact on prices. However, after trump statements that the second phase of the trade agreement with China may not be, the quotations fell by 4.5%, and even data about the largest in 25 years the daily sale of corn in China by volume of 1.38 million tonnes have been unable to support prices.

In a new USDA report, the experts almost did not change the estimates for most countries, only the United States significantly lowered its forecast for production, which will lead to a reduction in world reserves and the volume of proposals.

the Estimation of the initial world stocks of corn in 2020/21 MG reduced by 1 million tonnes to 311,95 million tons due to reductions in China to 3 million tons, Argentina-1.5 million tons, the EU-0.7 mn t, which will be partially offset by their growth in the US, 3.6 million tonnes and Brazil at 0.9 million tons.

compared to the June report, the forecast of the world corn crop in 2020/21 MG reduced by 25.27 million tons from 1,188 to 1,163 billion tons (in 2019/20 Mr 1,113 billion tonnes) due to reduced production in the US by 25.27 million tonnes to 381 million tonnes in Canada by 1 million tonnes against the background of its increase in Russia by 0.8 million tons.

the Forecast of world consumption of corn compared to the June balance decreased by 3.39 million tonnes 1,1635 to 1,1601 billion tons (in 2019/20 Mr 1.12 billion tonnes), primarily due to the reduction in consumption in the United States by 4.45 million tonnes to 316,88 million tonnes, which partially offsets the increase in consumption in China by 1 million tonnes to 277 million tonnes.

the Forecast of corn exports in 2020/21 MG is almost not changed, despite the slowdown in the global economy.

as a Result of the sharp reduction in production in the US ending stocks of corn in the country will decrease by 17.15 million tonnes to 67,26 million tonnes, against the background of reductions in China, 3 million tonnes will lead to a decrease in world ending stocks of 22.8 million tonnes to 315 million tonnes, while analysts had estimated it 324,84 million tons.