Adjustments in oil prices supported the quotations of corn, but it is unlikely that the growth will continue

Recovery in oil prices supported by several market quotations of corn in the U.S., although the prices on the physical market remain low due to lack of demand.

Oil prices yesterday rose against the background data on stocks and companies in some States that should increase demand for fuel.

For a week the oil reserves in the U.S. increased by 9 million barrels, distillates – by 5.1 million barrels, while reserves of gasoline fell 3.7 million barrels.

June futures for WTI crude oil yesterday rose 44% to 17.24 $/barrel, and Brent crude oil – 30% to 24.75 $/barrel.

the May futures on corn yesterday during the session fell to 118,9 $/t pressure data on the reduction of ethanol production and reduce the purchase price in the Asian markets, however, with the support of the rapid growth of oil prices in the end of the session they recovered to the level of Monday – 120,9 $/ton, and July, even up to 124,5 $/t

For the week, ethanol production in the U.S. declined by 5% to 537 thousand barrels/day, which corresponds to the consumption of corn by volume of 1.43 million tonnes/week, whereas last year this figure averaged 2.8 million tonnes.

News about the purchase of the tender by Taiwan's MFIG processor the next batch of Brazilian corn for August delivery at the price of 171 $/t C&F has increased the pressure on prices in the physical market.

prices of Brazilian corn fell to 152 $/t FOB, on the American – to of 141.25 $/t FOB US Gulf.

In Ukraine there is an imbalance in corn prices. On FOB basis, they are gradually declining and have fallen to the 167-169 $/t FOB for shipments in may – June, whereas at the port exporters hold them at a high level 163 to 166 $/t CPT, as traders need to close the previously concluded contracts, and the producers are holding back sales in expectation of higher prices and against the background of high purchase prices of domestic processors.