Corn futures in the US are getting more expensive despite the intensification of sowing
< span style="font-size:14px;" > on Monday, corn futures on the Chicago SWOT fell slightly against the background of increased sowing, but on Tuesday they resumed growth on data on increased drought in Brazil. Over the past three sessions, corn futures have risen in price by 7%: May-to 2 275.6 / ton, July – to лип 274.4 / ton, December-to<229.5/ton.
< span style="font-size:14px;" > the driver of the price increase remains hot and dry weather in the central regions of Brazil, where corn crops of the second crop are in the flowering phase. The lack of precipitation and air temperatures above 30 OC in the next 7-8 days will lead to a further decrease in production forecasts.
< span style="font-size:14px;" > the volume of corn inspected for export increased to 2.1 million tons in a week, which exceeded experts ' expectations and supported the market. Since the beginning of the season, 43.3 million tons have already been exported, which is 20 million tons higher than the corresponding indicator of the previous year and is 63% of the export forecast for the current season. To reach the forecast figures, almost 1.45 million tons of corn need to be shipped weekly until the end of the season.
< span style="font-size:14px;" > according to the USDA monthly corn processing report, 10.67 million tons of grain were used for ethanol production in March, and 72.9 million tons in the season as a whole, which is 57.7% of the USDA forecast in April of 126.4 million tons.
< span style="font-size:14px;">favorable weather accelerates the pace of corn sowing in the United States. According to the weekly report of the USDA, as of May 2, 46% of the planned areas were sown with corn, compared with 48% last year and 36% on average for 5 years on this date. In South and North Dakota, sowing is delayed by Frost, and in Michigan and Wisconsin – by precipitation. But warm weather with periodic rains, which is predicted next week, will speed up sowing.
