The corn market is awaiting today's bearish USDA report

market Participants expect that in the may WASDE report, which will publish today, will be corrected forecasts the corn harvest in the current season and the prospects of the crop in the new season. Now corn prices in the US continue to push the decline in demand and the forecast increase in the production of the new MG.

Earlier, the USDA predicted that the acreage of corn will be 97 million acres, and the increase in the average yield compared with last year will collect a record harvest of corn.

According to the median estimate surveyed by The Wall Street Journal experts in 2020/21 MG corn production in the U.S. will grow in comparison with the previous season, with 347,78 to 397 million tonnes, whereas the world – from 1113 to 1150 million tons at the same time the corn crop in Brazil will be reduced by 1.8 million tons and Argentina by 0.5 million tons that will be offset by a sharp reduction in consumption in the United States. Causing world ending stocks in 2019/20 MG will grow to 307,5 mln t compared to the April forecast 303,2 million tons.

corn in the U.S. sow twice more active than last year. On may 10, it is planted 67% of the planned areas compared to 28% last year and 56% on average for 5 years. Weather conditions contribute to the formation of a good harvest, almost the entire territory of the "corn belt" of the US this week will be precipitation.

the July futures on corn in the United States are traded for 125 $/ton, and December – by 131,5 $/t

Prices supported exports of corn from the US, who last week rose to a record this season of 1.33 million tons (which is 330 thousand tons higher than last year), of which 53% was shipped to Japan and Mexico. Just season exported 25 million tons with a projected 43.8 million tons.

On the back of lower production forecasts for Argentina, which completes the collection, and Brazil, where crops of corn second crop suffer from drought, prices for corn supplies in July-September to Vietnam increased to 175 $/MT C&F, while last week, South Korean refiners have purchased 500 thousand tons of corn for delivery in October-November at a price 170-172 $/t C&F.

recently the Turkish TMO will hold a tender for the purchase of 250 thousand tons of corn for delivery in may and June, which will be an indicator of prices for black sea corn.

the EU reduces imports of maize and for the week gained only 174 thousand tonnes, which lowers the demand for Ukrainian corn. As a result, prices have fallen to 172 $/t FOB for shipments in June, which corresponds to 162 $/t at the port. But producers are not willing to sell corn in may in the port even 165-166 $/t