Morgan Stanley says US corn exports expected to accelerate

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morgan Stanley says US corn exports expected to accelerate

2015-11-17 09:35 |
source: China Grain Network |

A research report released by investment bank Morgan Stanley shows that corn futures prices have fallen and are close to recent lows, which may provide a good opportunity to do more, because the pace of US corn exports is about to accelerate. The investment bank said that in the medium term, the recent price weakness may be a good opportunity to do more corn. Despite the disappointing performance of US corn exports so far in 2015/16, Morgan Stanley is not worried.

As of October 29, US corn export sales in 2015/16 were 13.15 million tons, 32% behind the same period last year. However, Morgan Stanley said that corn exports are still weak in the near future, but in the medium term, corn export sales will accelerate to meet global import demand.

Brazil, the second largest corn exporter, has a strong export outlook and revised forecasts. According to the latest counsellor report of the USDA's overseas agricultural bureau, Brazilian corn exports in 2015/16 are expected to reach 26 million tons, 1 million tons higher than the official forecast of the US Department of agriculture. However, Brazilian corn exports usually show seasonal characteristics, slowing from December to April, and then accelerating again in August.

Morgan Stanley pointed out that the production of major corn exporting countries has fallen sharply-especially Argentina and Ukraine. Therefore, when Brazil's corn exports gradually slow down in the next few months, the pace of US corn exports will accelerate.

Editor: Xi Shi (China Grain Network)

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