In the new season ending corn stocks will fall to 5-year low
may Data balance for corn from the WASDE almost match the expectations of market participants.
the Forecast of corn production to 2017/18 MG for Argentina remained unchanged, while that for Brazil reduced by 5 million tonnes to 87 million tonnes due to prolonged drought. The experts of the Brazilian Agency CONAB for the first time in the season increased the production estimate to 87.1 million tons.
reduction in the production of the final residues of maize in season 2017/18 will be reduced by 2.88 million tonnes to 194,9 million tons, which is by 32.88 million tonnes lower than in the previous MG.
According to the forecast of world maize production in 2018/19 season will increase by 19.4 million tonnes to 1056,07 million tonnes, With the US, which is one of the major corn producers, will reduce the production of 14.3 million tonnes to 356,63 million tons, while China will increase by 9.11 million tons, Argentina - 8 million tons, Brazil - 9 million tonnes and Ukraine - by 5.88 million tonnes.
Consumption in the new season will continue to increase, will exceed production and will reach 1091,77 million tonnes, which will be 22,43 million tons more than last season. This will reduce the final residues of maize to the lowest since 2012/13МР level 159,15 million tonnes, 35.7 million tonnes lower than in the previous MG.
Reduction of corn crop in Brazil and the increase in the valuation of domestic consumption in the US will boost prices for corn before the new crop market. Can be used by American and Ukrainian exporters of corn, with the potential to cover the needs of importers during the period.
the Experts at the USDA increased the forecast of the average price of corn in the United States by 40 cents, compared with the average price last season within 3.3 and 4.3 $/bushel or 130-169,3 $/t
Yesterday, corn futures in Chicago have not changed, as the analysts almost match the data of the report, therefore, been previously considered by traders in the strategies of purchase.