<\/p>\n\n\n\n
In\nour last issues we have pointed out that the combination of a large acreage\nwith repressed demand is not favorable to prices on the Chicago Board of Trade.\nThe confirmation of the acreage will only be known on June 30. However, a very\nearly planting indicates that producers will seek maximum productivity to\nequalize low market prices with production costs. Early plantings in the United States\ngenerally reveal high yield potentials. The doubt, then, will remain with the\nweather until August, as well as with demand projections for the next business\nyear.<\/p>\n\n\n\n
On\nMay 11th, USDA will update the figures for the 2019\/20 business year of supply\nand demand, but will also disclose the first supply and demand projection for\nthe following business year (2020\/21), as it traditionally does in May. Between\nthese two reports there are great negative indicators for demand and great positive\nindicators for production. The first point is that the current 2019\/20 supply\nand demand picture will still have demand pressure being repressed in the\nenvironment of the local ethanol sector and in the food segment. However, in spite\nof some plants making preventive stoppages due to the presence of COVID-19 in factories, there is still\nno sharp production cut that implies a projected cut in demand in the animal\nsegment, although this scenario is possible in the coming few weeks. The US government\u2019s\ndecision to require the maintenance of slaughterhouses in operation alleviates this\ncondition of potential decline in demand in the animal segment.<\/p>\n\n\n\n
Therefore, the current picture of the\nbusiness year must still suffer strong negative impacts from the environment of\nthe US\ndomestic demand, which were already signaled by USDA in its April update. Could\nit accentuate this cut in demand by increasing stocks? Possibly yes for this\nbusiness year. Therefore, only growing corn exports would be a positive point\nfor the US\nmarket in terms of short-term demand.<\/p>\n","protected":false},"excerpt":{"rendered":"
In our last issues we have pointed out that the combination of a large acreage with repressed demand is not favorable to prices on the Chicago Board of Trade. The confirmation of the acreage will only be known on June 30. However, a very early planting indicates that producers will seek maximum productivity to equalize […]<\/p>\n","protected":false},"author":5,"featured_media":9094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102],"tags":[],"commodity":[],"class_list":["post-14504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agribusiness-en"],"acf":[],"yoast_head":"\n