The USDA report collapse of corn prices
In the USDA report for February forecast of world production of maize was reduced compared with the December estimate by 0.3 million tonnes to 1099,6 million tonnes, 2.25 or 24 million tons will exceed the previous season.
the Decrease of production in the United States, Mexico and South Africa will be offset by increased harvest in China, Argentina and Ukraine, with the latter two countries unable to record charges.
For the U.S., the forecast of corn production due to yield reductions decreased by 5.2 million tonnes to 366,3 million tonnes, however, due to the reduction in domestic consumption carryover stocks of corn will decrease by only 1.2 million tons.
compared To the previous forecast, the estimate of corn production in Argentina increased by 3.5 million tonnes to 46 million tonnes, Ukraine by 0.5 million tons to 35.5 million tons, China – 1.3 million tonnes to million tonnes. 257,33
the Forecast of global trade in maize has increased by 0.9 million tonnes to 167,36 million tons, and carryover stocks by 1 million tonnes to 309,8 million tonnes, which remains with a minimum of 2014/15.
Despite the decline in production forecast in the U.S. corn futures on Friday fell 1.2% to 147,32 $/t
the Cause of falling prices was the abolition of the South Korean refiner KFA procurement tender, for participation in which have submitted 20 applications at the lowest price 209,99 $/t, whereas the buyer was willing to pay not more than to $207/t on a CFR basis.
In Ukraine on the background of shortage of supply and an active export demand corn prices rose to 181-182 $/t FOB, so that prices at the port has returned to the level 167-169 $/t
Valuation of imports for the EU and China left unchanged, so soon will increase competition of domestic corn, Argentinean corn, which from March will go to the global market.
Traders expect the signing of a trade agreement between the US and China, which resulted in the possible purchase by China of us corn to replenish sold out for the last two years government stocks.
During further exports of corn to China can be difficult, because on Friday the world organization of protection of animals reported identified in the West of Ukraine, three cases of ASF.