The USDA report for corn was bearish using updated data for China

2019-12-11 12:07:04
Machine translation
The USDA report for corn was bearish using updated data for China

Analysts expect the December USDA report for corn slowdown in production and exports to the U.S., but experts USDA left them unchanged, what really surprised the market. In addition, they increased the production forecast for China to 6 million tons according to the statistical Bureau of the PRC, which will lead to an increase in world ending stocks to 4.6 million tonnes to 300,56 million tonnes, while traders expected a reduction of 1 million tons of amazing with this growth of production and increase in domestic consumption of 1 million tons of looks unchanged import forecast of corn to China at 7 million tonnes.


However, without data on China beginning stocks, world production and ending stocks are slightly decreasing, which corresponds to market expectations as global ending stocks decreased by 1 million tonnes to 99.49 in million tons.


As of December 8 in the US, the corn was threshed on 92% of squares compared to the 100% average for 5 years, which indicates a possible reduction in the area of cleaning, which is not yet included in the USDA report.


For Ukraine, the forecast of corn exports increased by 20 thousand tons to a record 30,32 million tonnes, and imports in the EU increased by 41 thousand tons to million tons 25,21


After the publication of the report, the price of corn in Chicago dipped slightly, but by the end of trading recovered to the level of 148,1 $/t


Traders do not expect a significant change in the balance, but a gradual increase in demand for corn from China, where it began to increase the number of pigs, and the US intention to increase consumption of corn manolovo industry will support prices. The slowdown in corn production in South America through the dry conditions in Argentina or reduce the acreage of the second crop in Brazil could lead to higher prices.

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