Despite the increase in forecast production, low exports lowers the price of corn

2019-11-11 12:11:57
Machine translation
Despite the increase in forecast production, low exports lowers the price of corn

the Market expected in the November report USDA the average corn yield in the U.S. will be reduced from 168,4 to 167.3 bushels/acre, the area to harvest – with 81,8 to 81.3 million acres, a gross yield – from 350 to 345,5 mln tonnes

 

But experts USDA forecast areas for harvest left unchanged, the estimated yield was reduced to 167 bushels/acre, production – to 347,01 million tons and the forecast of consumption of corn in the United States — 1.27 million tonnes to 306,27 million tonnes with a reduction in ethanol production.

 

Due to lower export sales forecast of corn exports from the U.S. in the current season have reduced by 1.27 million tonnes to of 46.99 million tons, so the estimate for ending stocks was left at the October level 48,53 million tons.

 

After the publication of the report the price of corn in Chicago fell by 0.5% to 147,7 $/t

 

the Decrease in initial and final inventory, and production increased the forecast of consumption increases the tension balance of the world.

 

the Initial world stocks were reduced by 3.98 million tonnes to 320,06 million tonnes due to the reduction of stocks in Brazil and Argentina due to active export.

 

Despite the reduction in U.S. production by 3 million tons of the global production reduced only by 1.85 million tonnes to 1102,16 million tonnes compared to 1125,01 million tonnes in 2018/19 Mr. The increase in harvest in Russia and Turkey will be covered by the reduction in Mexico at 2 million tons, Ukraine by 0.5 million tons and the EU – 0.24 million tonnes.

 

Forecast global consumption increased by 0.78 million tonnes to 1126,27 million tonnes against 1146,47 million tonnes in 2018/19 Mr.

 

Assessment of exports increased for Brazil by 2 million tonnes, Russia by 0.5 million tons, but reduced for the United States – 1.27 million tons and Mexico – 0.7 million t. the Forecast of import of corn increased for Vietnam, Japan, South Korea and Colombia, but has decreased for Malaysia, Turkey, Iran and Egypt.

 

World ending stocks compared with the October report reduced by 6.6 million tonnes to 296 million tonnes, which is considerably lower than the forecasts of traders. The reduction of stocks in Brazil, Iran, Mexico, China and Argentina will be partially offset by increases in certain African countries.

 

This week the stock price will react to the new USDA balance sheet for corn.

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