China could significantly change the global balance of corn
China increased the estimate of the deficit of offers of corn in 2017/18 MG to 4.31 million tonnes against 890 tonnes predicted in September. This adjustment is associated with reduction of own production of grain amid rising demand from processors.
After the abolition of the state program of support of producers of corn acreage has significantly decreased, so the production estimate is reduced from the September 212,48 million tonnes to RUB 210.1 million tons.
the Forecast of consumption increased relative to the previous report 214,57 to 215,62 million tons, including due to increase of demand from producers of ethanol.
the Growth of the deficit of offers of corn will allow the government to get rid of the giant state reserves of grain of the crop of past years.
the Global balance of corn in today's report USDA will be under the scrutiny of traders.
market Participants expect that a new report by experts from the USDA reduced the estimate of the corn crop in the United States from 14.18 to 14,171 billion bushels (versus 15.15 billion bushels in the season 2016/17).