Corn prices may rise as a result of reduced production in China
Ahead of the report USDA the September corn futures in Chicago yesterday, down 1% on to 168,5 $/t in December – to 170.3 $/t
Warm and dry weather in the U.S. improved the condition of crops and reduced prices for corn and wheat, despite the news about the resumption of trade negotiations between the US and China and a reduction in forecast corn production in China.
the Amount of corn in the United States that are in good or excellent condition, a week increased by 1% to 57% compared to 75% average over 5 years. A new forecast of corn production from USDA will allow traders to adjust the trading strategy.
Experts estimate the corn crop in the United States at the level of 343 million tons in porvenwith the June forecast USDA 347,5 mln t and last year 366,3 million tons.
According to the forecast Chinese mission USDA, corn production in China in 2019/20 MG will decrease compared to the June estimate by 9% to the lowest with the 2012/13 year's level of 230 million tonnes as a result of pest attacks and government policy to reduce acreage. Cleaning the area under maize is expected in the range of 40 million hectares, which is 1 million hectares less than expected in June.
Due to the reduction of the pig population experts have reduced the forecast of consumption of corn in China by 7% to 259 million tonnes and imports by 1 million tonnes to 6 million tonnes.
In the balance USDA the prospects for China are presented separately from the world because the private data on transferable residues and production does not allow to make an objective assessment.
India is planning to acquire a minimum of 500 thousand tons of corn, the revised code by the government grain during import will reduce the duty from 60% to 15% and to increase the supply of maize on the domestic market, where prices have risen because of the shortage of grain.
In Ukraine, precipitation and decreasing temperature contribute to the development of corn, so some analysts increased the estimate of the crop to 36 million tonnes compared with the June forecast USDA 33 million tons for which the prices for deliveries in October-November dropped to 170-172 $/t