In the market report it published yesterday for the crop season 2015/16, the International Grains Council (IGC) predicted that corn production would total 966 million tons. In other words, the IGC has increased its forecast by a further 3 million tons as compared with the previous month. The reason for the upward revision is a favorable crop outlook in China, which is able to entirely offset the poorer crop prospects in the EU.While the IGC in June had still been assuming a deficit of 13 million tons on the global corn market, its prediction in July of a deficit of only 6 million tons is far more positive. The corn price lost ground following publication of the report but was later able to regain it and even managed to close 1.5% up at 373 US cents per bushel, says Commerzbank.
The material has been provided by InstaForex Company – www.instaforex.com