Unexpectedly neutral USDA report lowers corn prices

2020-12-11 12:10:41
Machine translation
Unexpectedly neutral USDA report lowers corn prices

market Participants were expecting significant adjustments to the December USDA balance sheet for corn, however, its data was the opposite traders.

 

After the publication of the report, corn futures on the stock exchange in the United States declined to 166 $/t and only good exports kept prices from falling further.

 

Weekly export sales of corn totaled 1.36 mln tonnes, which corresponds to the upper boundary of expert expectations, whereas the actual exports for the week decreased by 33% to 715 thousand tonnes, of which 271,3 thousand tonnes were sent to China and 261,2 thousand t – in Mexico.

 

For the US corn balance is almost not changed, though analysts expected adjustments to exports and ending stocks after significant changes in November.

 

the Forecast for world corn production in 2020/21 MG reduced 1 million tons to 1143,56 million tons (1112 million tonnes in 2019/20 Mr), due to the reduced harvest in Argentina by 1 MMT to 49 MMT, the EU by 0.5 million tonnes to 63.7 million tonnes (66,68 million tonnes in 2019/20 MG) Canada – 0.5 to 13.56 million tonnes, although Ukraine forecast increased 1 million tons to 29.5 million tons (35.9 million tons in 2019/20 MG). Recall that analysts had expected reduced crop in Argentina at the level of 0.3 million tonnes to 49.7 million tons.

 

assessment of the import of corn to China has increased by 3.5 million tonnes to 16.5 million tonnes, while for the EU would be reduced by 1 million tons to 19 million tons for Egypt – 0.5 million tons to 10.5 million tons

 

the Forecast of world maize exports in 2020/21 MG increased by 1.2 million tonnes to 185,97 million tonnes due to Ukraine, for which the estimate exports raised by 1.5 million tonnes to 24 million tonnes, whereas Argentina and Brazil export forecasts left unchanged despite analysts ' expectations.

 

Due to reduced production and increased consumption in China, the world corn ending stocks in 2020/21 MG reduced by 2.47 million tonnes to 288,96 million tonnes (303.4 million tons in 2019/20 MG), while analysts had been estimated at 290 million tons For Ukraine, the forecast of ending stocks was reduced to 890 thousand tonnes compared to 1.16 million tonnes in the November report and 1.46 million tonnes in 2019/20 Mr.

 

Under pressure from a new report, the purchase price of corn in Ukraine in the near future will continue to fall.

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