Despite the increase in production forecasts corn prices remain stable

Experts CIG in its August report increased in comparison with estimates of the July forecast for global corn production in 2019/20 MG by 0.73% to 1.1 billion tonnes, while the USDA analysts have estimated it at 1,108 billion tons. The forecast of ending stocks has increased by 4% to 284 million tonnes, which is significantly worse than projected by USDA in August 307,7 million tons.

Assessment of corn production in the U.S. increased by 8 million tonnes to 342 million tonnes, which is still weaker than the USDA forecast in 353 million tonnes.

December futures for corn remained at the level 145,6 $/t despite the increase in forecast production and ending stocks and the fall in the price of wheat.

Through high prices for U.S. corn, the U.S. has reduced exports of corn in comparison with the previous season by 17%. Now it is made on 94% of the forecast USDA compared to 104% in average of 5 years.

the approach of the new corn crop lowers prices of American grain and presses on the markets of Argentina and Brazil, which are widely exported corn in July and August.

the Increase of supply of Ukrainian corn will put pressure on the world markets that now expect a further fall in prices.