To your attention the review of the grain market after the release of the USDA report:
The situation in the US grain market has become very tense, due to the deterioration of the forecast of crop yield and corn crop in the country. On Monday trading was held on average volumes (486 thousand contracts), but the price for corn futures almost did not change. On the day the report was released, the market received a forecast from the IIG US, which surpassed the most pessimistic expectations of traders. The reduction of grain production by more than 34 million tons is expected. The average volume of deals is about 800 thousand contracts since large investors will increase their position in anticipation of further price increases.
USDA’s forecast for the world wheat market is more favourable, however, investors understand that the correlation between the two crops is high, and therefore the lack of corn can be compensated by wheat. After the release of the report of American IIG, wheat futures in Chicago have followed the trend in the corn market. Following the release of the IIG USDA report, wheat price increased to 190.33 USD/tonne (+3.86 USD/ton) and corn price – to 168.4 USD/tonne (+ 5 USD/tonne).
After the negative predictions regarding the situation with crops in the United States, reduced levels of transitional leftovers, KME analysts expect a further increase in prices with short periods of correction at least in the next 2 weeks.