The International Grains Council (IGC) revised its global corn crop estimate down. The new estimate shows the global corn production will drop to 2.4 million tons, considering a 7 million ton lower crop in China.
Corn production in US is revised up to 4.5 million tons but still it is unable to offset the lower production in China. Since the demand estimate remained unchanged, the supply deficit envisaged by the IGC has risen to 7 million tons.
"Global ending stocks are set to decrease to 200 million tons, which is still a comfortable level and should give rise to no fears of tight supply", says Commerzbank.
