USDA INCREASES US CORN PRODUCTION ESTIMATE, CUTS STOCKS
The U.S. Department of Agriculture raised its estimate for corn production and cut the soybean production forecast on Friday, adjusting its estimates in line with the amount of acres planted with each crop. However, the Department cut its estimates for ending stocks of old and new crop corn and soybeans below what analysts had expected. Expectations of large crops from the U.S. have pushed future prices of both commodities near four-year lows. The USDA forecasts the 2024/25 corn crop to be the third-largest in U.S. history and said corn end stocks would still be the largest in six years as of September 2025. Corn and soy futures on the CBOT turned higher following release of the data.
USDA forecast the 2023/24 corn crop end stocks to be 1.877 billion bushels, down from June and below expectations of 2.049 billion bushels. Corn production at 15.1 billion bushels, above the average analyst expectation of 15.063 billion bushels. soy production at 4.435 billion bushels, above analyst estimates of 4.424 billion bushels. U.S. 2024/25 corn end stocks forecast clocked in at 2.097 billion bushels, lower than the agency’s estimates in June and lower than analyst expectations at 2.31 billion bushels. Soybeans end stocks for 2024/25 were forecast at 435 million bushels, lower than the expected 449 million bushels and a decrease from June’s 455 million bushels.
(Link: Reuters)
PAKISTANI FLOUR MILLS RESTART ON PROMISE OF TAX RELIEF
Pakistani restarted operations on July 14, a day after the Pakistan Flour Mills Association (PFMA) called off its strike following the government’s promise to address their concerns, the Express Tribune reported. The government said it would withdraw the withholding tax within 10 days. PFMA said if the tax is not abolished by July 22, the mills will go on indefinite strike until the tax withdrawal is official. Representatives of the flour mills said that the Federal Board of Revenue (FBR) is shifting the responsibility of revenue collection onto flour mills after its own failure in tax collection. The FBR has imposed a 5.5% withholding tax that will increase the price of flour by eight rupees (10 cents) per kilogram.
(Link: WorldGrain)
