The USDA report collapse of corn prices

2017-11-10 12:06:13
Machine translation
The USDA report collapse of corn prices

the Increase by experts USDA prediction of crop yield and gross harvesting of corn in the US has fallen off the price of the grain.

 

the December corn futures in Chicago fell by 2.3% to 134,34 $/t

 

Report USDA in November surprised market participants corn. The average corn yield in the United States in 2017/18 MG increased to a record 175,4 Bush/acre or 11 t/ha against the October 171,8 Bush/acre.

 

Inassessment of corn production from the October report increased from 14.28 to 14,578 billion bushels (370,2 million tons). Carryover stocks will rise to their highest in the last 30 years the level of 2,487 billion bushels (63,17 million tons). Investors did not expect such a significant increase in production, so price reacted with a significant decline.

 

World corn production will increase by 5 million tonnes to worth 1.0439 billion tons, and ending stocks will increase by 3 million tonnes to million tonnes. 203,86

 

USDA noted that as a result of reduction of export of Ukrainian corn will rise the competitiveness of American grain. In addition, it will increase the demand for corn from Mexico through a possible reduction in private harvest of sorghum.

 

forecast For Ukraine corn production reduced from 27 to 25 million tons, and exports from 21.5 to 20.5 mln t. corn Exports from Ukraine remains insignificant because of competition from corn from South America and the USA and now stands at 2.3 million tons.

 

during the month, the price of Ukrainian corn in the port dropped to 1-2 $/t 149 $/t. the strengthening of the hryvnia from 26.8 to 26.5 UAH/$ led to a decrease in hryvnia prices from 4750 to 4650 UAH/t for deliveries to the port.

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