Low corn prices contribute to the growth of exports

the Forecasts of a big crop of corn in the United States and Ukraine have led to the collapse of corn prices on both sides of the Atlantic. But the decrease in quotations of the relatively high wheat prices gave an opportunity to intensify the pace of corn exports from both countries.

According to a recent report by the USDA, corn is collected from 90% of the area compared to 93% on average for 5 years on the same date. Rain with snow, which took place at the weekend, will keep gathering in the corn belt of the United States. However, forecasters predict this week dry and warm weather, which will increase the rate of harvest.

Exports of U.S. corn is better than last year. Since the beginning of the season already exported 11.9 million tonnes, which 80% more than last year on this date. The USDA forecast total maize exports in the current season will reach 62,2 million tons, compared with the 61.8 million tons last year.

the Volume of exports for last week came in slightly below expectations of traders and built 797,5 thousand tons, which is 31% less than the previous week, but 17.5% higher than the corresponding period last year.

Through this corn futures in Chicago fell slightly to the level of 147.2 $/t

In Ukraine continues harvesting corn, and as of November 14, with 87% of area harvested 30 million tonnes of corn with a yield of 7.5 t/ha against of 5.44 t/ha in 2017. Despite the snow that fell in some regions and decrease in air temperature, farmers can complete the harvest and meet this target production level of 33.5 million tonnes.

Export of Ukrainian corn from the beginning of the marketing year, 67% more than last year, and has already reached 3.8 million tonnes For last week, corn exports from Ukraine decreased by 14% and amounted to 491 thousand tons, which is primarily connected with logistic problems on the railway and in ports. Rising demand from exporters gave rise purchase prices, which last week increased by 1-2 $/MT to the level 150-151 $/t or 4950-5000 UAH/t for deliveries to the port in November, and for deliveries in January are offered contracts at 155 to 157 $/t, which hinders the sale from the producers, who expect prices to rise in January and February as it was last year.