Will Dryness in China Effect Corn Ending Stocks?

by Archer Financial Services | May 15, 2018

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.

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