The USDA’s December supply and demand report showed no change in the environment of the U.S. corn framework. Still high stocks for the current season and maintenance of domestic consumption 9 million tons lower than in 2018/19 in the feedstuff segment remain as the points of strong doubts in the market.
The international market has prices on the CBOT with difficulty in coming out from the range of USD 3.60 to 4.10/bushel. The basic reason for this accumulation movement is the U.S. stock. Currently at 48.5 million tons, it is quite comfortable to meet all local and global demand until the local 2020 season is set. Thus, no matter how much prices react to specific situations, they will find no support until there are corrections in the local supply and demand framework, some major “new fact” or an adjustment in domestic and export demand.