The United States Department of Agriculture (USDA) revised upwards projections for the corn crop this year, which should reach 1.1 billion tons. With that, the projection for the ending stocks of the cereal were raised from 284.6 million tons to 297.6 million tons. The estimate for the Brazilian crop was maintained at 118 million tons.
Market analyst Jonas Pizzato, from Stonex consulting, attributes the increase in stocks to the American harvest. “In the old crop, in the US, we had a decrease both in exports and in domestic consumption — fine adjustments, not least because the old crop ended in August, but this brought an addition of two million tons to the stock”, observes the analyst.
“The USDA revised upwards the yields to 184.4 bags per hectare and the area to 37.7 million hectares, bringing a production of 380.1 million tons”, adds Pizzato. “We were already expecting higher yields for corn, and the report confirms this expectation. On the demand side, the USDA increased exports to around 63 million tonnes, with the proposal to cover a little of Brazil’s exports,” he says.
“In Brazil, the old and new crops had little change, in Argentina we had an increase in crops, and the big surprise came from China, where the price of hogs fell a lot and, therefore, corn consumption decreased”, analyzes Pizzato.