Bearish USDA report increases pressure on corn prices
In the March report, the experts, the USDA increased the forecast of production of fodder crops in 2020/21 MG 5.9 million tonnes to 1444,8 million tonnes due to the increase of the corn crop in South Africa and India, and barley in Australia. A corresponding increase in ending stocks with the increase of the acreage in the new season will increase pressure on the price of feed grain.
Under the pressure of the new report and downs of the prices of oil futures on corn on the stock exchange in Chicago yesterday fell another 1% to 212,8 $/t
a month ago, and now preliminary estimates did not coincide with data in the report in which the experts has increased the forecast of production and ending stocks of corn in the world in 2020/21 MG, however, generally did not change the estimates for South America, the USA and China.
In comparison with the previous report forecast global corn production experts USDA increased by 2.26 million tonnes to 1136,31 million tons, which is 20 million tons exceeds the previous season due to better yields in India, Bangladesh and South Africa. Despite the dry weather conditions, the production forecast for Argentina is left unchanged.
Thanks to the activation of corn exports from India and Africa from the global exports increased by 0.85 million tonnes to 186,55 million tonnes to 14.9 million tons exceeds 2019/20 MG.
the global consumption of corn in 2020/21 MG increased by 1.25 million tonnes to 1151,77 million tonnes (1134,6 million tonnes in 2019/20 MG) due to the growth of consumption in Vietnam, Bangladesh and the Philippines.
Increase forecast for global corn ending stocks by 1.14 million tonnes to 287,67 million tons (compared to 303,13 million tonnes in 2019/20 MG) as a result of growth stocks in Asian countries has surprised analysts who expected reduction in ending stocks of 2.3 million tonnes to 284,2 million tonnes.
the supply of feed grain on the world market is growing. A slight decline in prices has increased sales by manufacturers, therefore, in the near future when the weather in South America and the U.S. the price of feed grain will continue to decline.
