Weather conditions and sowing rates of corn in Brazil are better than last year
World corn prices remain at record highs amid Russia's war against Ukraine and the blocking of Ukrainian corn exports.
Traders are currently watching the sowing of the new crop of corn, especially in Brazil, where the loss of the second crop last year led to a sharp jump in prices. Prior to the Russian invasion, experts predicted a reduction in the area under corn in the United States and Ukraine due to a significant rise in the price of mineral fertilizers, but now the situation will change. Sowing areas in Ukraine will decline sharply, but in the US will increase due to high prices for corn.
According to the Conab agency, as of March 19 in Brazil, 95% of the planned area was sown with corn of the second harvest, while last year this figure was 84%. Recent rains have replenished soil moisture reserves, and weather conditions in most parts of the country are conducive to crop development.
Harvesting of the first harvest of corn has intensified in the country - during the week the number of threshed areas increased by 8% to 42%, while last year it was 39%. The yield of first-harvest corn is low due to the drought in December and January, but the condition of some of the late crops is much better, as recent rains have helped to fill the grain.
By the end of 2022, Brazil's IGF will abolish the 18% ethanol import tariff to reduce domestic fuel prices.
According to the EIA, ethanol production rose 1.65 to 1.042 million barrels per day in the week of March 12-18, a 9-week high. At the same time, ethanol reserves increased by 203 thousand barrels to 26.148 million barrels.
May corn futures in the US yesterday rose 0.6% to $ 298.3 / t amid rising oil prices.
May futures for Brent oil at London's ICE Futures rose 5.3% to $ 121.6 / barrel yesterday, and for WTI oil on the New York Mercantile Exchange (NYMEX) - by 4.9% to 114.6 $ / barrel due to the suspension of oil shipments from a large Russian export oil terminal damaged by the storm. Russian authorities have said it will take up to two months to repair, during which time crude oil supplies will fall by 1 million barrels per day, which will worsen energy supplies to Europe. It is likely that the terminal was deliberately shut down in order to further heat up oil prices and frighten the world with oil shortages and rising oil prices to $ 150 or even $ 300 / barrel in the event of a further blockade of supplies from Russia.
