Double impact USDA in the price of corn
the September report, USDA immediately twice hit the price of U.S. corn.
First, the average corn yield once again increased by 0.4 bushels/acre to 169.9 bushels/acre (10,65 t/ha) with the expectations of traders in 168,2 bushels/acre. Accordingly, the evaluation of the grain harvest in the U.S. increased by 800 thousand tons to 360.3 million tons.
Second, the forecast of consumption of U.S. corn was reduced by 1.27 million tons because of reduced production and exports of ethanol.
In 2017, the price of U.S. corn will affect the production increase, consumption reduction and increasing ending balances.
USDA experts expect that in 2017/18 MG price of corn will fall 0.1 $/bushel to 2.8 to 3.6 $/bushel. The price is 3.2 $/bushel (125,95 $/t) to be the lowest in 11 years. The average price does not fall below $3/bushel since 2005-06.
After the release of the report, December corn futures fell 3% to 136,18 $/MT, but then fell back to the level 138,38 $/t
In the new balance world beginning stocks are reduced by 1.65 million tons, production – 840 million tonnes, total consumption by 4.09 million tons, for which the final carry-over stocks of the season 2017/18 increased by 1.6 million tons.