The lower crop forecast in Brazil supports corn prices
Active export of corn from the United States and another reduction in forecast production in Brazil support the stock price, despite the high rates of sowing and good crop condition of corn in the United States.
as a Result of moisture deficit in the agricultural regions of the Center and South of Brazil, experts AgRural lowered compared to the may estimates forecast corn production second crop from 66.7 65.3 million tons, up 4 million tonnes inferior to last year's level. The total production of all crops of corn in the country in 2020 will decrease in comparison with the previous season from 100 to 96.4 million tons.
the corn Futures in the US yesterday began to grow, but later fell under pressure data on the improvement of the condition of crops.
As of June 8, corn in the United States planted 97% of areas, compared to 78% last year and 94% average over 5 years. For a week the number of crops in good or excellent condition increased by 1% to 75%, whereas a year ago the figure was 59%.
corn Exports from the U.S. for the week decreased by 46 thousand tons to 1.1 million tons and just season reached 29.6 million tons, which is 26% below the corresponding period last year. To reach the USDA projected 45,09 million tonnes to the end of the season (1st September) weekly need to ship 1.2 million tonnes of corn.
the EU slows down the import of corn, and for the week gained only 165 thousand tons, and the total in 2019/20 Mr – 18.7 million tons of grains, which is 17% below last year's level. Recall, the USDA estimates corn imports in the EU, at 21.5 million tons.
On the physical markets, the prices of Brazilian and U.S. corn rose to 160 $/ton FOB for shipments in the near future, while the Argentine has risen to $150/t FOB. Prices on Ukrainian corn remains high 180 $/t FOB, but the demand for it is almost non-existent.
This week the market will await the June WASDE report, which expect an increase in forecast production in the US in the new season and increase the initial stocks of corn in the U.S. and globally.
