Forecasts of corn production are rising - prices are falling
Yesterday, the USDA published its assessment of corn crop in good to excellent condition are 76% of the crop. It is surprising that in comparison with last week the figure has not changed, despite the high air temperature. Flowering of maize continues at the present time in this phase are 56% of the acreage, in contrast to 32% of the area last week.
Good condition of crops confirms the forecast of corn production in the United States at the level of 365 million tonnes against 345 million tonnes last year. Prices for grain of the new crop continue to decline, and on the Chicago stock exchange has dropped to $ 140 vs $ 175 a month ago.
As of makurdi in the black sea region is good, so is expected a slight growth of production and exports. Forward price purchases of maize in Ukraine is $ 150 with delivery in October-November. After a furious increase in the price of corn in may-June to a level of 170-180 dollars compared to the price of wheat 150-160 dollars, many processors switched to the purchase of feed wheat instead of corn. This has supported the level of wheat prices. So the arrival of newly harvested corn will significantly put pressure on the price of feed wheat, the amount of which will be much more in touch with weather conditions in Europe.
the Flowering of maize in July-August is a very important period in the formation of the crop. So in early August, will be known when the data about the condition of the corn and wheat crop, there will be a correction in price trends on the wheat and corn of the new harvest.