The March WASDE report increased the pressure on corn prices

2020-03-11 12:12:07
Machine translation
The March WASDE report increased the pressure on corn prices

the Promulgation of the "bear" balance WASDE for corn, especially amid increasing exports from South America, has limited the recovery in prices in the grain following the growth of oil prices.


several Experts WASDE raised its forecast for global production and ending stocks of corn in 2019/20 Mr, although analysts do not expect significant changes in the balance.


In comparison with the previous report, the estimate for world corn production increased by 0.42 million tonnes to 1112,01 million tons due to increased harvest in South Africa by 1.5 million tons to 16 million tons, which offset the decline in production in India, Peru and Russia.


the Forecast of world residence of corn increased by 0.25 million tonnes to 1135,47 million tons, resulting in the global ending stocks increased by 0.5 million tonnes to 297,34 million tonnes compared to 320,8 million tonnes in the previous season.


For Argentina and Brazil, the balances of corn left unchanged.


the Forecast of corn exports to Ukraine increased by 1 million tonnes to 32 million tonnes, South Africa – 0.5 million tons to 2.5 million tons, EU countries – by 0.1 million tonnes to 2.9 million tonnes, while for Russia it was reduced by 1 million tons to 4.7 million tons.


the Fall of the ruble against the dollar will increase the competitiveness of Russian grain, resulting in forecasts of exports to Russia can reconsider.


the Balance of corn for China, compared to the February report, the experts WASDE left unchanged and even reduced the forecast of consumption in connection with the epidemic coronavirus and a slowdown in the economy.


the corn Futures in Chicago yesterday resumed by a further 0.4% to 148,4 $/t, however, the increase in the export forecast from Ukraine and supply of newly harvested corn from Argentina reduce the export potential of U.S. corn, which increases pressure on prices.


Active corn planting the second crop in Brazil, and then in the United States, will lead to a further decline in prices, especially for corn new crop.


In Ukraine, purchasing prices for maize are gradually reduced and for deliveries to the port in March and April has fallen to 163-164 $/t. However, producers expect prices to recover to 170-175 $/t, so keep selling, in which traders are unable to meet the demand from exporters.

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