Experts WASDE left unchanged the global balance of corn

As analysts expected, in the February USDA report estimates the global balance for corn is almost unchanged compared to January, including forecasts for the United States.

the Estimate of world production of corn increased by 0.75 million tonnes to 1111,59 million tons due to increased harvest in South Africa by 0.5 million tonnes and Ukraine by 0.3 million tonnes.

the Forecast of world consumption of corn increased by 1.81 million tonnes to 1135,22 million tonnes due to the growth of domestic consumption for ethanol production and animal feed in the United States by 1.27 million tonnes and Brazil by 0.5 million tonnes.

as a result, the estimate of world ending stocks was reduced by 0.97 million tonnes to 296,84 million MT compared to 320 MT in the previous season.

the Balance of corn for China, the experts still left unchanged and does not reduce the estimated consumption of grain in the distribution coronavirus and the slowdown in the economy that have caused a drop in oil prices in the future will reduce ethanol production and corn consumption.

For USA evaluation of corn processing for ethanol increased, however, the reduced export forecast, so the overall balance remained unchanged. Amid falling oil prices by 10% and reducing the margin in the production of ethanol, traders do not expect an increase of volumes of processing of corn, so prices fell slightly after the publication of the report. The decrease in the export forecast is confirmed by the slow pace of corn shipments from the US early in the season due to strong competition from Argentina, Brazil and Ukraine.

For Ukraine, the export forecast increased 0.5 million tons to 31 million tons thanks to strong exports at the beginning of the season.

For Argentina and Brazil, the balances are left unchanged. The projections of corn exports from Brazil to 36 million tonnes and Argentina at 33.5 million tonnes, substantially slower than in the 2018/19 MG, where countries exported 42 and 36 million MT of corn, respectively. This demonstrates the increased competition from these countries in the struggle for the buyer, especially given the reduction in the consumption of maize in Asia due to the HIV epidemic in China.