The fall in oil prices continued lower corn prices

2020-10-30 12:06:03
Machine translation
The fall in oil prices continued lower corn prices

the number of human cases Сovid-19 in the world to a record 511 thousand people per day (81 thousand in the United States, 49 thousand in India, 47тис in France) and the Swiss scientists identify new type of mutation coronavirus increases the pressure on world markets and leads to a drop in oil prices and "energy crops" that are used in the production of fuels, in particular for corn and palm oil.

 

due To the possible strengthening of quarantine restrictions in the US and EU oil prices subdued in the fall. Yesterday the December futures for Brent crude on London's ICE Futures exchange fell by 5.4% to 37.1 $/barrel, WTI oil on the new York NYMEX - 5% to 35.7 $/barrel.

 

Advanced on the oil market, pushing the political uncertainty ahead of presidential elections in the United States, which will be held on 3 November, and the increase of oil reserves in the US, which indicates a slowing demand.

 

the December corn futures on the stock exchange in the United States fell yesterday by 2.1% to of 155.6 $/t and November futures on the MATIF in Paris by 1.7% to 192 €/t, while January remained at the level of 185,75 €/t or 217,1 $/t

 

On the background of strengthening of quarantine in the EU, the dollar against the Euro will probably continue to strengthen, which will continue to reduce the cost of European corn, and will increase pressure and prices of Ukrainian and American.

 

the Market did not support even the increase in export sales of corn from the U.S. for the week by 22% to 2.24 million tonnes, as the major part of 1.43 million tonnes purchased Mexico (partial harvest, 2021), whereas the data on sales in China.

 

Brazil surprised the market active export of corn, which in the first half of October was 4,312 million tonnes, or 65% of total exports Sep. In 2020, the country exported 27,384 million tons of corn projected at 34.5 million tons.

 

prices of Brazilian soybeans remains high 230 $/t FOB due to domestic shortages, while prices for U.S. corn amid increasing suggestions of the new crop fell to 215 $/t FOB. The decline in futures will accelerate the fall of prices on physical markets in the near future, especially on rumors that the USDA will leave the import forecast for China at the level of 7.2 mln t in spite of active procurement of the last time.

 

the price of corn in Ukraine yesterday fell a further 5-10 $/t to 205-210 $/t or 7100-7150 UAH/t on the background of increased supply in the port and sales for high prices from the manufacturers. Bid prices of domestic corn are 230-240 $/t FOB, while the bid price does not exceed 225 $/t FOB.

 

Farmers are willing to sell corn for 220 $/t at the port, but the traders will not be able to sell it at that price, though the day before and were forced to raise prices to meet previously concluded contracts. Against the background of further decline in world prices and increased supply of maize from the USA should not hope for the recovery of the purchase prices for the Ukrainian corn.

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