Commodities Buzz: USDA Estimates 2 percent Rise In Global Corn Production For MY 2018/19

The latest update from United States Department of Agriculture (USDA), the global coarse grain outlook for 2018/19 is for higher production, increased use and lower ending stocks. Corn production is forecast up from a year ago, with the largest increases for China, Brazil, Argentina, Ukraine, and Russia. Global corn use is expected to grow 2 percent, while global corn imports are projected to increase 5 percent. Notable forecast increases in corn imports include Vietnam, China, Bangladesh, Iran, Malaysia, Mexico, and Saudi Arabia. Global corn ending stocks are down 35.8 million tons from a year ago, and if realized would be the lowest since 2012/13. For China, total corn supply is down 11 million tons in 2018/19, as larger production and imports are more than offset by lower beginning stocks. Corn area is projected higher based on current cash and futures prices that are above a year ago. Total coarse grain imports are forecast at 16.1 million tons, down 1.1 million from 2017/18, but still the fourth largest in the world behind Mexico, Japan, and the EU. World market prices for coarse grains are expected to remain below Chinas domestic corn prices, particularly in the feed deficit south, thus driving expected demand for imported feedstuffs in 2018/19.