CBOT: USDA increased world corn ending stocks above market`s expectations


Over the period under review (July 6-13), CBOT corn prices fell significantly (-5.05% over the week).

The CBOT futures were pressured by the publication of July USDA WASDE report. The estimates of corn ending stocks in the USA in the current and new season were raised more significantly than expected by the market. The forecast of world corn ending stocks in the 2017/18 season was increased by 6.5 MMT to 200.8 MMT, mainly due to raised estimates for the USA, Mexico and Ukraine.

The weather factor, namely rain forecasts in the corn belt of the USA, which will help to reduce the negative impact of high air temperature on corn, also pressured the prices.

The USDA data on corn conditions in the USA prevented the further price reduction. Over the week, the share of corn in good and excellent conditions decreased 3% to 65% (76% in 2016).



Readers choice: TOP-5 articles of the month by UkrAgroConsult