UDSA has sharply reduced the forecast of maize production in the United States
Suddenly for traders in the June report experts UDSA sharply reduced forecasts of yield and production of maize in the USA in the new season. The market expected the usual conservative lower projections, however, catastrophic for the delay of sowing in the current season, the report data was generated on the estimated acreage at the beginning of June.
According to the report, the result of a decline compared to the may forecast of sowing areas and 3 million acres to 89.8 million acres and yield from 176 to 166 bushels/acre or 10.4 t/ha production of maize will decrease from 381,8 to 347,49 million tons.
the Forecast of consumption of corn decreased by 7.5 million tonnes, exports at 3.2 million tonnes, ending stocks of corn in the U.S. will decline from 63.1 to 42.5 million tons.
Changes in the world balance of corn, mainly due to data for the United States. The estimate of world production of maize has decreased from 1,133 to 1,099 billion tons, compared with 1.12 billion tons in the past MG. For the Argentina production forecast increased 1 million tons, for Russia by 0.5 million tons, whereas Canada decreased by 0.4 million tons.
The report data, the July corn futures in Chicago rose by 4.8% to EUR 168.1 $/t in December by 3.7% to 175,5 $/t
In the final report on the crops that will publish on June 28, will indicate the actual acreage of corn and the updated forecasts of yield and production, on change which will react accordingly corn prices.