The increase in forecast corn production has fallen off the American market
the USDA increased the forecast of world production of corn in season 2016/17 MG on 4.84 million tons to a record 1030,53 million tonnes.
the Main adjustments are to the United States (+4.27 million t) and Ukraine (+1 million tons). A sharp increase in the harvest of U.S. corn has surprised experts. The corn harvest in Russia by 10% would exceed the record of last season to 14.5 million tons.
the Volume of world exports will rise to 0.44 million tons to 144.2 million tons at the expense of Russia and Ukraine. Russia will be able to export 4.7 million tons of corn, which is 7% higher than the end of last season.
World ending stocks will increase by 1.38 million t to a record 218,19 million tons For the US they increased by 2.11 million tons to 61,05 million tons, which is pretty surprised market participants.
an increase in the forecast of the production and strengthening of the dollar against global currencies has reduced the price of U.S. corn to 135,33 $/ton.
After the publication of the forecast of yield reduction in France, corn on the MATIF rose to 162,26 € /t or 177,11 $/ton.
Price of Ukrainian corn continues to fall due to increased supply in the port and at the present time is:
- on the basis of CPT-port 151-152 $/ton or 4550-4600 UAH/ton
- on the elevators 4150-4250 UAH/t.