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Porto Alegre, August 17, 2020 – The USDA’s\nreport for August reflects the picture of productivity potential adjusted by\nthe reality of the U.S. crop. Expectations for record productivity were\nconfirmed in this report. The market was a little surprised that stocks did not\ngrow in the proportion of production, but USDA contained the increase in stocks\nwith more demand. The surprise of the report is the upward trend in imports from\nEurope, with potential for 25 million tons.<\/p>\n\n\n\n
The 2020 U.S. corn crop was planted within\nan optimal window, until May 30. Quite different from what happened in 2019,\nwhen the planting was strongly delayed by rains, the 2020 season started very\nwell. The climate in June and July showed the rain regime adjusted to the need\nof crops, and only in Texas did the drought complicate potentials. High summer\ntemperatures do not seem to have affected crops, and not even the adjusted\nrainfall regime seems to have brought problems. Productivity was raised from\n178.5 to 181.8 bushel\/acre, a new record. Some satellite research companies\nproject even higher figures. The harvest must begin in September.<\/p>\n\n\n\n
Production jumped from 381 to 388 million\ntons in this August update, a new record. Consequently, the market expected\nstocks to show proportional growth. USDA raised stocks from 67 to 70 million\ntons. The increase in the projection of domestic demand and exports\nconsolidated this adjustment. Even so, these are very high stocks even with all\nthe demand expansion. So, there is not much room for a major price recovery\nwithout a strong ‘new fact.’<\/p>\n\n\n\n
The attention ended up turning to the data\nof greater corn imports by Europe. Europe has imports to be confirmed at 21\nmillion tons in the 2019\/20 cycle, a new record. For 2020\/21, the projection is\nnow estimated at 25 million tons. Some wheat losses in France and Russia would\nbe contributing to this figure. The point is that Europe imports mainly from\nBrazil, Argentina, and Ukraine and could be a supportive point to Brazilian\nsales in 2020 and 2021.<\/p>\n\n\n\n
Ag\u00eancia SAFRAS Latam<\/p>\n\n\n\n
Copyright 2020 –\nGrupo CMA<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, August 17, 2020 – The USDA’s report for August reflects the picture of productivity potential adjusted by the reality of the U.S. crop. Expectations for record productivity were confirmed in this report. The market was a little surprised that stocks did not grow in the proportion of production, but USDA contained the […]<\/p>\n","protected":false},"author":5,"featured_media":9116,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102],"tags":[],"commodity":[],"class_list":["post-18195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agribusiness-en"],"acf":[],"yoast_head":"\n