Maize prices decline under pressure from the bearish USDA report
In the January report experts USDA reduced the estimate of world maize exports in the season 2017/18 in comparison with the previous report, from 151,4 to 150,8 mln t. In particular, for Brazil estimate exports are reduced 0.5 million tons to 35.5 million tons, for Russia – 0.2 million tons to 4.8 million tons.
the Forecast of world maize production reduced by 196 thousand MT to 1,045 billion t. In particular, for Russia, the crop forecast is reduced 0.5 million tons to 13.5 million tons, while for the U.S. increased 0.5 million tons to 370,9 million tons.
Despite the increase, experts NASS increased the yield of corn in the United States by 1.2 bushels/acre to a record 176,6 bushels/acre, total production of U.S. corn will increase slightly due to the reduction of harvesting areas.
Expectations regarding the decline of corn production in South America did not materialize, the grain production forecasts for Argentina and Brazil experts USDA left unchanged. Now traders will be watching weather conditions in South America and evaluate the acreage.
the Forecast of world corn ending stocks increased by 1.5 million tonnes to 206,5 million tonnes, primarily to Brazil from 9.3 to 10.3 million tons and USA with of 61.9 to 62.9 million tons.