Forward prices for corn in Ukraine continue to grow

2021-08-11 12:06:07
Machine translation
Forward prices for corn in Ukraine continue to grow

Speculative growth of wheat prices in Ukrainian ports to the level of 2 250/ton and above continues to support forward corn prices, even despite favorable weather conditions for wheat harvesting and the development of corn crops.

 

Forecasts for record wheat and corn harvests in Ukraine this year are more realistic than in the previous season, but traders are actively buying wheat and corn at rising prices amid lower forecasts for the wheat harvest in Canada and the United States and corn in Brazil, which will support world prices at the level of the second half of the previous season.

 

Forward prices for corn for the week increased by 1 10/ton to 2 245-250/ton for deliveries to the port in October – November, although wheat prices jumped as much as 2 20-30/ton.

 

The forecast of a decrease in the corn harvest and exports in Brazil is significantly supported by corn prices in Ukraine.

 

Against the background of the release of the updated USDA balance sheet, stock quotes for corn slightly decreased, as the market does not expect sharp changes, except for a decrease in the forecast of production in Brazil by another 5 million tons to 88 million tons, which is already taken into account in trading strategies. Experts of the Conab agency lowered the forecast of corn production in the country compared to June estimates by 6.7 million tons to 86.65 million tons.

 

On the Chicago SWOT, December corn futures fell 0.5% to.217.7/ton this week amid lower oil prices and improved corn crops in the United States. There, during the week, the number of crops in good or excellent condition increased by 2% to 64% compared to 71% last year.

 

October futures for Black Sea corn yesterday fell by 1 1/ton to 2 259.25/ton, although in general for the month they increased by 2 24/ton.

 

Traders expect that in the August USDA report, due to a decrease in the harvest in Brazil and Russia, the forecast for world production, as well as corn exports from other countries, will be lowered, which will increase the market's dependence on the crop in the main exporting countries-the United States, Argentina and Ukraine.

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