By Terry Roggensack | The Hightower Report
Dryness issues in the northeast corn regions in China along with reduced acreage has China's Ministry of Agriculture and Rural Affairs reducing the Chinese 2018-19 corn production to 210 million tonnes down 2.9% from last year's 215.8 million tonnes. The recent USDA Supply/Demand report pegged China's 2018-19 corn production at 225 million tonnes. This suggests that world ending stocks could be adjusted lower by 15 million tonnes in the next supply/demand update. If so, ending stocks would drop to 144.15 million tonnes from 194.85 million this year and a record high 227.53 million tonnes last year. This would be a stocks/usage of 13.2%. This would be the tightest global stocks/usage in 45 years.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.
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The risk of loss in trading futures and options on futures can be substantial. Each investor must carefully consider whether this type of investment is appropriate for them. Past performance is not necessarily indicative of future results.