Corn prices rose after a decline in production forecasts for the United States and Ukraine

2019-09-13 12:05:48
Machine translation
Corn prices rose after a decline in production forecasts for the United States and Ukraine

In a new report, the experts, the USDA lowered the forecast of world maize production by 3.36 million tonnes to 1104,88 million tonnes compared to 1122,1 million tonnes in 2018/19 MG, and forecast global consumption – 0.93 million tonnes to 1128,1 million tonnes compared to 1132,18 million tonnes in 2018/19 Mr.


the initial Estimate of world corn stocks increased by 0.97 million tonnes to 329,55 million tonnes (against 339,55 million tonnes in 2018 and 351,35 million tons in 2019), whereas the forecast of ending stocks decreased only by 1.45 million tonnes to 306,27 million tonnes, although analysts evaluate them in the 303,18 million tons.


the Forecast of the corn crop in the United States decreased compared to the August estimate with 353,09 to 350,52 million tonnes, although analysts have estimated it at 345,5 million tons.


the Estimation of area to the harvesting of corn in the U.S. has left at the level of 82 million acres and the forecast yield decreased from 169.5 bushels/acre in August to EUR 168.1 bushels/acre, while analysts estimate them at 81.3 million acres and was 167.2 bushels/acre, respectively.


forecast For Ukraine corn production unexpectedly cut 0.5 million tons to 36 million tons, while local experts estimate it in the range of 35-35. 5 million tonnes due to dry weather in August and September.


left Unchanged the forecast of the corn crop 2019/20 MG for Argentina - 50 million tons, Brazil – 101 million tonnes, the EU – 64,8 million tons because of reduced production in Germany and France will be offset by an increase in Romania and Bulgaria. The import forecast for China was left at the level of 7 million tonnes, the EU – 21 mln tonnes


Immediately after the publication of the report, corn futures fell as the market expected lower production forecast for the United States, but at the end of the session, the December contract rose 2% to of 144.6 $/t


corn Exports from the U.S. last week fell to 498,09 thousand tons, which is inferior to the traders ' expectations, but in the whole season, reached 7.19 million tonnes, the lowest level since 2004/05.


Export sales in 2018/19 Mr amounted to 49.2 million tons, which is 14% lower than in the previous season and 4 million tonnes less than the USDA predicted.


In the new season, the corn market will continue to struggle for customers, and increased sales of the sellers will be forced to lower export prices.

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