The crop conditions are reported to have improved. According to the NASS USDA, as of September 22nd, 55% of the crop was in good condition, which may result in better-than-expected yield. For comparison sake, this time last year, only 24% of the crop was in good shape.
The US harvesting campaign is still underway. As of September 22nd, 7% of the crop was harvested. For comparison sake, this time last year, 37% of the crop was harvested. There is a harvesting delay. The market had expected a much rapid harvesting campaign (at least by 11%). The dry and warm weather in Mid West of the USA will help the locals to accelerate the harvesting process.
According to the US export inspection, 17,916 million bushels were inspected. The pace of inspection is lagging behind last year’s figures ( by 26%).
Meanwhile, Informa Economics has increased its predictions for the US corn harvest by 0,145 up to 13,889bn bushels, which is above the USDA’s current forecast - 13,843bn bushels.
Dry weather delays the sowing season in Argentina. However, the forthcoming weekend is expected to be rainy, which is good news. According to Argentina’s Department of Agriculture, the expected corn yield in the 2013-2014 agricultural year is at least 30 million tons. At the same time, the USDA’s prediction is more modest - some 26 million tons.
According to India’s Department of Agriculture, summer grains will produce a slightly bigger yield - 129.32 million tons in the 2013-2014 agricultural year as compared to 128.2 million tons during the previous agricultural year.
At the same time, China is planning to invest in 3 million hectares of Ukrainian croplands. Xinjiang Production and Construction Corps signed an agreement with KSG Agro (Ukraine).
The EU licensed the import of 38 000 tons of corn last week. Since the beginning of the 2013-2014 agricultural year, the local authorities approved the import of 911 000 tons of corn.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of corn futures:
