The USDA report fallen sharply, the price of corn

Traders were looking forward to the report USDA with the final data on sown area of corn and soybeans in the United States, which would determine future price trends. Precipitation, which lasted from April to June, delayed sowing, and the majority of analysts reduced the estimate of acreage under corn to 84.3-88.8 million acres, on average, to 87 million acres compared to the predicted USDA in March 92,8 and Jun 89,12 million acres.

because of this, the price of corn for 6 weeks increased by 33% and renewed a 5-year high.

Hedge funds amid uncertainty with the future harvest sharply increased long positions in corn to a 13-month high in anticipation of further price increases.

However, due to rising prices for corn and problems with the export of soybeans to China, the farmers decided to take a chance and plant the corn after the optimal timing, and not to go for sowing of soybean, as hoped by analysts.

Report USDA with the estimate of acreage under corn in the United States at the level of 91.8 million acres came as a surprise to the market, although the final figures will be known only in August.

the corn Futures fell by 6% to 170 $/t

the Prices are somewhat supported by the decline in corn stocks on June 1, up to 132,1 million tonnes, 2.6 million tonnes is inferior to last year's level and 3.3 million tons less than expected.

the new season of square planting and harvesting of corn are significantly different, and the area under silage corn reached a record high. In 2017/18 MG of the sowing area of maize was 90.2 million acres, and area cleaning 82.7 million acres. In 2018/19 MG they were and 81.7 89.1 million acres, respectively. Now the cleaning area will not exceed 82 million acres and a yield of 345 million tons.

In the June forecast, the IGC forecast of production of corn in the U.S. decreased compared to the previous estimate with 362,4 to 333 million tons.

the yield of corn in Argentina are delaying precipitation. According to the stock exchange of Buenos Aires, threshed and 46% of areas, compared with 55.7% in average. The experts of the IGC increased the forecast of the corn crop in the country to 57 million tonnes.