The main reason for the projected imbalance of the global corn market, according to IGC analysts, will be a decrease in acreage under this crop in the United States and the European Union, writes apk-inform.com.
An additional risk factor for grain yields remains problems in the global fertilizer market, associated with geopolitical tensions in the Middle East. This could negatively affect not only corn, but also other crops, increasing uncertainty about the size and quality of the future crop.
At the same time, global corn consumption will continue to grow and is expected to exceed production. Demand from the bioethanol industry and the feed sector of the livestock industry will remain the main drivers of consumption growth.
As a result, global corn grain stocks may decline to 294 million tons, the lowest level in the last three seasons. The largest declines are expected in key exporting countries, including the U.S., Brazil, Argentina and Ukraine, which could further support global prices at relatively high levels.
