The uncertainty with the new harvest puts pressure on corn prices

2019-06-03 12:07:05
Machine translation
The uncertainty with the new harvest puts pressure on corn prices

the Increase in corn prices due to lower production forecasts, Friday was interrupted due to a sharp fall in oil prices due to the introduction of States from June 10 5% duty on goods from Mexico and the prospect of increasing it to 1 Oct to 25% after the flow of illegal immigrants.

 

the recent Escalation of tensions with Mexico, which is the largest buyer of U.S. corn and oil supplier, may worsen the condition of the economies of both countries.

 

the July corn futures on Friday dropped to 1-2 $/t to EUR 168.1 $/t in December – to 174,95 $/t

 

Prices supported the increase in weekly export sales of corn to 906,7 thousand tons despite the expectations of experts within 650 thousand tons.

 

due to the rise in corn prices in the US and problems with river transportation, the largest American producer of pork company Smithfield, which is owned by the Chinese, imported 4 cargo of corn from Brazil.

 

China and South Korea, have reduced demand for corn due to ASF and higher prices.

 

the Brazilian Agency AgroConsult raised its forecast of maize production in the country by 2 million tonnes to 100,4 million tonnes due to the increase in the gross side of corn second crop.

 

In Ukraine corn prices rose, but demand for grain of the old crop decreases as traders complied with the agreement. During the week Ukraine exported 650 thousand tons of corn, with the start of the season at 27.3 MMT, although the USDA expected that as of 1 June will be sold 29.5 million tons.

 

Prices for domestic corn of the old crop remain at the level of $180/t FOB with delivery in June, while the grain of the new harvest with November delivery offered at 185-187 $/t FOB, but the number of people willing to buy at that price very small.

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