There is more corn available worldwide this 2020-2021 season than previously thought.
As a result, the closing stock is growing. This is according to the US Department of Agriculture (USDA) in the latest Wasde forecast on the production and consumption of agricultural raw materials. The final stock of soybeans this season remains stable compared to last season. The wheat supply is shrinking this season compared to last season. This is due to great demand for wheat to replace expensive corn in animal feed. China also buys a lot of wheat on the world market.
The world still has 288 million tons of corn in stock at the end of this season. That’s just 1 million tons more than the USDA estimated in February’s Wasde forecast. But the trade had expected a fall in the closing stock because of the enormous demand for maize on the world market. This is evident from surveys conducted by the Reuters and Bloomberg news agencies.
The closing stock of soybeans remains almost unchanged as expected in the February forecast, the USDA reports. It remains at 84 million tons. Here too, trade had expected a decline.
The USDA is declining wheat stocks, as trade had expected. The USDA keeps closing stocks at 301 million tons of wheat. That is 3 million tons less than expected in February.
The USDA forecast is seen as leading by analysts and traders. That is why corn prices came under some pressure on the Chicago futures market after the Wasde report was published. Soy and wheat prices gained some ground on Tuesday, but were also somewhat under pressure during the trading day on Wednesday. Corn quotations also fell further in Chicago on Wednesday.
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