The decline in demand in the US and crops in Brazil increases the pressure on corn prices

2020-04-14 12:06:47
Machine translation
The decline in demand in the US and crops in Brazil increases the pressure on corn prices

After due to reduced demand for automobile fuel stop companies producing ethanol in the United States now began to close factories for the production of pork, as prices and demand from China fell sharply. Now closed more than 100 processing plants, - informs the Agency Agricensus.

 

According to USDA, producers of meat and ethanol in 2019/20 Mr remade almost 80% of the corn crop in the United States.

 

the world's Largest company for the production of pork Smithfield owned by the Chinese conglomerate WH Group yesterday announced the closure indefinitely of one of the largest of its factories in the United States in the city of Sioux falls in North Dakota due to the outbreak of Covid -19, which will further reduce the demand for corn and soybean meal.

 

According to the CME, in a few months, the price of the current day futures on CBOT pork in April decreased by half, with 78,625 cents/lb as of 30.12.2019 g. to 37.5 cents/lb as of 06.04.2020 G.

 

Last year, the demand for pork in the United States have increased sharply because the population in China has declined significantly due to ASF. Then the meat industry in the US has significantly increased production in anticipation of rising purchases by China.

 

However, the introduction of quarantine first in China and then in the United States continues to reduce the demand for pork in both countries that in the near future adversely affect the demand for soybean and corn.

 

As of March 1, the number of pigs in the United States was 77.6 per million heads, which is 4% higher than the indicator of last year on the same date, stocks of frozen pork increased by 6% compared to the previous month and by 7% in comparison with 01.03.2019 G.

 

in addition to the price of U.S. corn will push the reduction in U.S. exports in the second half of the season, with increased crop forecasts in Brazil.

 

For the week, corn exports from the US declined by 19% to 1.03 million tonnes, and since the beginning of the season amounted to 20.3 million tonnes, which is 36% less than the indicator of last year on this date.

 

the acceleration of the collection of soybeans in Brazil has allowed to sow corn second crop at the optimum time, allowing the Agency Conab forecast the second crop corn increased compared to the March estimates by 2.8% to a record 75,437 million tonnes, which is 3% above the figure 2019 This partially compensates for low first crop of corn, which in April was estimated at 25,275 million tonnes, which is 1.2% below the March forecast and 1.5% the figure 2019

 

According to the April forecast of Conab in Brazil in 2020 will gather 101,868 million tons of corn, 1.7% higher than the estimate for March, and by 1.8% - a figure 2019

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