The USDA report collapse of corn prices
After the release of the "bearish" USDA report corn prices fell by 4% to 146,45 $/t. Precipitation is held in the corn belt of the United States, also pressured prices.
compared To the June balance sheet in the July report, the experts, the USDA increased the forecast of world corn production to 2017/18 MG per 5 million tonnes to 1,036 billion tons, which is inferior to the previous season at 32 million tonnes, US production of maize increased from 357,3 to 362,09 million tonnes against last year's 384,7 million tonnes, which surprised traders.
the Amount of corn in good or excellent condition decreased by 3% to 65% (versus 76% in 2016), the plant condition continues to deteriorate.
the Forecast for world export has not changed and will be 150,8 million tonnes, down from 144.5 million tons in 2016/17 MG. Estimate exports to Brazil increased from 33 to 33.5 million tonnes (22 million tons in 2016), but reduced for EU countries from 2.5 to 2.3 million tonnes, which will still exceed 2 million tons last year.
the Estimate for ending stocks in the 2017/18 season increased from 194,3 until 200,8 million tonnes, 27 million tonnes will yield to the level of the previous season and will be the lowest rate, starting from 2014/15.
According to forecasts of Safras&Mercado, Brazil this year will receive a record winter corn crop at 67 million tonnes, Thanks to the two harvests, the country will gather at the official forecast of 96 million tons and the forecast Safras&Mercado – 106.4 MMT of corn.