The drop in the markets for soybeans and wheat, lowers the price of corn and reduces the probability of recovery of prices in Ukraine

2021-04-02 12:08:11
Machine translation
The drop in the markets for soybeans and wheat, lowers the price of corn and reduces the probability of recovery of prices in Ukraine

Yesterday on the Chicago stock exchange, the price of soybeans fell by 2.5%, and wheat – 1.5%, followed by the corn futures rose sharply yesterday, fell 3.8% to $220/t

 

Speculative jump in corn prices in Chicago did not support the purchase prices in Ukraine because of low export demand does not allow traders to raise prices, especially given the gradual decline in wheat prices.

 

Forecast areas of planting corn in the United States-level 91 million acres shocked the market and led to a jump in prices. However, the situation calmed analysis of the situation last year, when the analysts ' estimates in the 93-94 million acres were closer to actually sown 91 million acres-than-forecast USDA experts at 97 million acres.

 

the Decline in demand for corn increases the pressure of fundamental factors on prices.

 

According to the USDA in February, the volume of processing of corn was reduced in comparison with January at 20% to 8.5 million tonnes, which is 23% lower than in Feb 2020

 

Export sales of US corn for the week sharply decreased from 4.4 million tonnes to 797,3 thousand tons were Also cancelled sale 69 thousand tons of corn to China, which increased the pessimism of traders. Exports of corn for the week made up 1.98 million tons, but only in the season was 33,92 million tons projected 66 million tons.

 

behind the rise in price of the futures purchase price of corn in Ukraine rose yesterday in the port of 100-150 UAH/t to 7700-7900 UAH/t or 242-248$/t that stopped the fall in prices, which began on Monday.

 

the Increase in sellers price proposals of Ukrainian corn to 265-270 $/MT FOB did not affect the bid price, which remained at 255 $/t FOB, and then, mostly, with certification in China.

 

the Lack of export demand for expensive Ukrainian corn increases the pressure on prices, and support them in the coming months can only provide dry weather in Brazil and the slow pace of planting corn in the United States.

 

estimated to Reuters, stocks of corn in Ukraine at the end of the season will grow by 51% to 2.4 million tonnes due to the slowdown in exports in April – June. As at 31 March corn exports from Ukraine decreased compared to the corresponding period last year to 7 million tons to 16 million tons, including in March from 3.5 to 2.2 million tonnes Until the end of the season you want to export 8 million tonnes, 2.7 million tonnes per month, which will be difficult to do because of the decline in the price of wheat old crop to 245-250 $/t FOB and new – to 230-235 $/t FOB.

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