Porto Alegre, October 5, 2020 –\nThe quarterly stocks report released by USDA\nlast week brought a new change in the pattern for corn and soybean prices on\nthe CBOT. Apparently, the upward movement for corn seems to be exaggerated,\nconsidering that the U.S. crop has just begun and is a good crop despite the\nlosses already registered in Iowa. The number, in fact, reflects that demand\nwas stronger than expected by USDA at the close of the business year, which is\nstill a good sign for this new business year. The harvest progress and the\nsupply and demand report on the 9th will be important factors next week.<\/p>\n\n\n\n
The quarterly stocks report released by\nthe USDA is important in September by bringing the carryover stocks from\n2019\/20 to 2020\/21. In other words, the supply and demand report will have as final\nstocks for the 2019\/20 business year these data on quarterly stocks released on\nSeptember 30.<\/p>\n\n\n\n
USDA caused some surprise to the market. The\nexpectation was for quarterly stocks of 2.24 billion bushels, but the report\nbrought 1.995 billion bushels or 50.7 million tons. These stocks were also\nbelow the USDA\u2019s expectation, or 57 million tons. These data will now close the\nsupply and demand picture, and this adjustment in stocks will be made on the\n9th. Then, in the October supply and demand report, USDA will reduce the final\nstocks for the 2019\/20 business year from 57 to 50.7 million tons.<\/p>\n\n\n\n
Consequently, the 2020\/21 picture will\nalso have a corrective adjustment. If all production and demand indicators remain\nthe same as in the September report, stocks for the new crop will fall from\n63.4 to 57 million tons. As the 2020 crop is not yet defined, since the harvest\nis just beginning, USDA will still be able to make production corrections in\nthis and in the next reports until January. The market is creating some\nexpectation for cuts in production due to initial productivity results and new\ninformation from Iowa. Perhaps a cut with 1 to 3 million tons out of a crop of 378\nmillion tons. It seems little to have a strong impact on the corn market.<\/p>\n\n\n\n
Ag\u00eancia\nSAFRAS Latam<\/p>\n\n\n\n
Copyright 2020 – Grupo CMA<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, October 5, 2020 – The quarterly stocks report released by USDA last week brought a new change in the pattern for corn and soybean prices on the CBOT. Apparently, the upward movement for corn seems to be exaggerated, considering that the U.S. crop has just begun and is a good crop despite […]<\/p>\n","protected":false},"author":5,"featured_media":9093,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102],"tags":[],"commodity":[],"class_list":["post-19855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agribusiness-en"],"acf":[],"yoast_head":"\n