Futures news. Prices for grain crops have risen due to USDA report, which has shown considerable shortage of corn stocks resulting from higher demand for fodder and production of ethanol. The report also highlighted the possibility of frost in the Middle West of the USA at the beginning of sowing.
According to the Analytics Team of Commodity Trading Department, active export of grain crops from the USA, especially corn, supports the price.
At the same time, the pressure is cast by rising US dollar, favourable weather conditions in Europe, and the beginning of corn vegetative period.
According to Goldman Sachs, this year’s price is expected to amount to 5.25 USD per bushel.
As informed by International Grains Council, world corn production during the season of 2012-13 will amount to the record of 900 mln.tons due to higher sowing and yield in the USA. By the end of 2012-13 season world stocks of corn will amount to 129 mln.tons, which is 3% less than stocks at the end of 2011-12 season).
Stocks will drop due to lower production in China and Brazil. World corn consumption during the season of 2012-13 will rise by 2.2% to 893 mln.tons. Consumption in starch industry and need of raw material for ethanol production are expected to drop in the USA due to smaller domestic demand and export.
According to USDA report, during the season of 2012-13 US corn acreage will rise to the maximum for the last 75 years and will amount to 95.2 mln.acres (+4.4% to the season of 2011-12).
USDA informed that grain and oil crops sowing season has started in the USA. As of April 01, 2012, 3% of planned corn has been sown (in comparison to 2% at the same time last year).
According to USDA, transit stocks of corn as of March 01, 2012 amounted to 6.009 bln. bushes, which is 7.9% less that stocks as of March 01, 2011. As of March 22, 2012, 438.1 ths.tons of corn have been ordered by contracts (total export during the season of 2011-12 amounts to 34 066 ths.tons, which is 12% less than last year).
During the last several seasons China has become an active importer of American corn due to the decline of domestic production. Import of corn into China during the season of 2011-12 amounts to 4 mln.tons, which will become the record since the season of 1994-95.
