The USDA predicts increased demand for corn in the new season
According to forecasts of the USDA, a record consumption of corn in the new season with a reduction in production will result in inventory reduction.
World production of corn will decrease from 1065,1 million tonnes in the 2016/17 season to 1033,7 million tonnes in 2017/18 season. The largest producers of corn – the US and China will reduce production, while Canada and the EU, the gross grain harvest will increase.
World consumption of corn in comparison with the current season will increase from 1032,9 million tonnes to 1055,2 million tons, including feed – 633,9 million tonnes to 650,9 million tons.
World import grain will increase from 137,9 million tonnes to 144.8 million MT, mainly due to Vietnam, Egypt, EU countries, Saudi Arabia, Iran and Mexico.
At the same time export will be reduced from 158.6 million tonnes to 151,9 mln t, including for the United States – 56,5 million tons to 47.6 million tons.
the End inventory reduced to the lowest since the season 2013/14 level 195.3 million tons, while this season they achieved a record 223,9 million tons.
However, neither in USA nor in Europe the price of corn has not yet responded to the USDA report. During may, traders will be watching the progress of sowing and the weather conditions.
In Ukraine corn prices for may deliveries remain at 156-157 $/t and the forward price for October deliveries fell to 148-149 $/t