<\/p>\n\n\n\n
The number for\nthe planted area in the United\n States released by USDA caused a certain\nchange in the environment of prices on the Chicago Board of Trade (CBOT). An\narea well below expectations created an environment of price adjustment within\na new level for the CBOT. However, to generate a consolidated upward movement,\nthe U.S.\ncrop would need either new negative information involving productivity or\nhigher than expected domestic and export demand. At this point, USDA offset cuts\nin production with cuts in demand projection, precisely in the sector where\ndemand is stronger, that is, in the feedstuff segment. The climate is the point\nto be monitored from now on.<\/p>\n\n\n\n
The area indicated\nby USDA\nfor 2020 stood at 92 million acres on June 30, below the 97 million acres of\nthe planting intentions report. Effects of the pandemic on the ethanol and meat\nindustry affected planting decisions in the United States. These data were responsible\nfor adjusting the market view to a potential price below USD 3.20\/bushel at the\nU.S. harvest to a new outlook at USD 3.40\/3.80 a bushel, depending on routine\nfactors such as the end of harvest, domestic demand, and exports.<\/p>\n\n\n\n
As a result,\nthe market made its correction to the price trajectory in light of the new\nproduction outlook and waited for USDA to update supply and demand last Friday.\nUSDA maintained productivity projections at 178.5 bushels per acre, and for an\narea to be reaped of 84 million acres it generated a new production projection\nat 381 million tons. Good production, without a doubt, although inferior to\nwhat was projected earlier. The major adjustment made by USDA in this report\nwas not only in the production environment. In May and June, with the\nprojection of a super crop, the USDA compensated the excess supply with a\nstrong optimistic demand bias for the 2020\/21 season. Now, with a certain cut\nin the projected production, the Department tried to cut some of the optimism\nwith the recovery of future demand. Demand cuts occurred in both the current and\nnext business years.<\/p>\n","protected":false},"excerpt":{"rendered":"
The number for the planted area in the United States released by USDA caused a certain change in the environment of prices on the Chicago Board of Trade (CBOT). An area well below expectations created an environment of price adjustment within a new level for the CBOT. However, to generate a consolidated upward movement, the […]<\/p>\n","protected":false},"author":5,"featured_media":9101,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102],"tags":[],"commodity":[],"class_list":["post-16867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agribusiness-en"],"acf":[],"yoast_head":"\n