Global Corn production for the season 2018-19 is projected at 1052.42 Mio Tons, -0.3% from May outlook, but it is unchanged in the largest producing Countries. Compared to the 2017-18 season, increases are expected for China (+4.2%), Brazil (+12.9%) and Argentina (+24.2%).
Global Soybean production is projected at 355.24 Mio Tons, slightly higher from last month, mainly on higher production for Brazil, that accounts for 33% of milk production (the same share as the U.S.). Brazil’s export is also expected to grow.
Global Corn ending stocks (Forecast 2018-19)
U.S. Corn outlook is for greater Corn used for ethanol production and lower beginning stocks, reflecting the exports during the month of April 2018, that bested the prior monthly shipment record set in November 1989.
Global Corn ending stocks for 2018-19 are estimated at 154.69 Mio Tons, -19.7% compared to the current season, with decreases for China and the US, which together hold 65% of world stocks.
Also the global Soybean ending stocks are forecast lower (-5.9%) compared to the ongoing season, mainly reflecting the decrease expected in the U.S. (-23.8%). However, ending stocks are higher if compared to the forecasts made in May (+ 0.4%), due to the growth of the ending stocks expected in Brazil.
In response to the tariffs President Trump placed on Chinese good, due to come into effect on July 6, China retaliated with a long list of 25% tariffs including corn, soybeans and several dairy products. TESEO will track the development of this situation, through specific focus and analysis, in the coming Corn & Soybean reports.