Corn prices have fallen after the release of the USDA report
the Experts at the USDA updated the August balance of supply and demand of corn traders were surprised by a sharp increase in yield in the United States, that on Friday the price of corn futures in Chicago have fallen by 4.6%.
According to the forecast, the world corn production will increase by 6.75 million tonnes to 1,061 billion tons, but consumption growth to 4.8 million tons will lead to a slight increase in carryover to 155.5 million tons.
the Increase in yield estimation of corn in the U.S. is 4.4 bushels to a record 178,4 bushel /acre or 111,7 t/ha (average rating of the traders was at 176,3 bushels/acre) resulted in an increase in the forecast of gross yield of corn on 9 million tonnes to 370,51 million tonnes, which almost match last year's level with a smaller area sown.
the report reduced the forecast of maize production for the EU of 1.7 million tons, Brazil - 1.5 million tons, South Africa - 0.5 million tons, whereas for Ukraine, projected to increase production by 1 million tonnes to 31 million tonnes.
Adjustment of production will change the direction of world exports of corn, which will grow by 1.8 million tons.
the Decrease in corn production in Brazil this season will reduce the export by 3 million tonnes to 23 million tonnes and will allow the U.S. to increase its exports of corn of the old and new crop and 59,69 to 60.96 million tonnes respectively. Due to reduced corn production in the EU increased import forecast of corn in the new season from 16 to 18 million tonnes, which increases the chances for the export of Ukrainian corn, which is planned to supply to world markets 24.5 million tons.