Before the epidemic is over, the world is facing another storm of food price hikes. The U.S. Department of Agriculture released the latest installment of the global agricultural supply forecast, mainly for feed corn and soybean futures production is expected to decline significantly, stimulating the Chicago Board of Trade March soybean contract surged 3.61% at $14.22 per bushel; March corn futures touched 5% of the upper limit of the rise, at $5.172 per bushel. Corn, soybean and wheat futures have pushed to multi-year highs in recent weeks, with all three prices rising to new highs since 2014.
The U.S. Department of Agriculture expects 2020 to 2021 settlement stocks of about 140 million bushels of homegrown soybeans, down from 175 million bushels reported last month; corn settlement stocks of 1.552 billion bushels, also down from 1.702 billion reported last month. According to the authorities’ capacity estimates, the production of corn in 2020-2021 was 14.182 billion bushels; soybean production was 4.135 billion bushels.
It is worth noting that, affected by the weather drought, the latest report also lowered the future production expectations of key food exporters Brazil and Argentina, in the premise of governments trying to ensure their own food security, the global agricultural market has formed continued pressure, intensifying market concerns about food shortages this year.
Futures International senior analyst Terry Reilly said the data triggered greater price shocks, as the U.S. Department of Agriculture not only downgraded last year or the current year’s supply, and realize that demand led by beans is quite strong.
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