Despite the decline in stock prices corn prices in Ukraine are growing

corn Prices in Ukraine are growing for a week due to increased demand from exporters who have to close contracts for delivery in March-April, and the curbing of sales producers that watching the daily increase of prices by 50-100 UAH/t

price Increase contributes to the devaluation of the hryvnia from 27.6 to 28.1 UAH/$, and the higher export prices at the port from 160 to 167-168 $/t over the week. Against this background, manufacturers almost stopped the sale because they believe that the price of which rose last week by $10/ton, a week will achieve the anticipated level of 180 $/t in the port.

However, the global corn market, the increasing pressure of fundamental factors, which at any moment could again collapse prices. The main factor is the fall in oil prices, which yesterday fell another 3% and now Brent crude is trading at 22,8 $/barrel. The restriction of flights between the countries and quarantine regulations in most countries has reduced the demand for fuel, particularly that contains 10% biofuel produced from corn.

In the United States from grown annually 350 million MT of corn nearly 130-140 million tons goes to ethanol production. Therefore, the restriction of movement in the country will lead to a sharp drop in fuel demand and, consequently, reducing the ethanol production. A weekly report on the use of corn for ethanol production, which will publish on Wednesday, will show, how to reduce consumption.

at present, the consumption of corn for ethanol has decreased by 2.7-2.8 million tons per week, which will lead to an increase in reserves and export offers and price reductions.

the corn Futures in Chicago yesterday dropped another 1.8% to 134,7 $/t

They were supported by the weekly exports of corn from the United States at 1.2 million tons due to shipping to Japan, Mexico and Colombia. Since the beginning of the season, the United States exported 18 million tonnes from the USDA projected at 43.8 million tons and a reduction in domestic consumption will increase export supply by lowering prices.

the price of U.S. corn dropped to 2-3 $/t to 163 $/t FOB US Gulf, compared with the price of Argentine corn 168-169 $/MT FOB Ukrainian – 180 $/t FOB.

In today's USDA report acreage of corn in the United States in 2020 could increase by 4.5% to 94 million acres, which will increase pressure on prices. Also, change the balances of corn.

Caused by quarantine blocking exports of soybeans and corn from Argentina supported the price of Ukrainian corn, while the government of Argentina announced that it would not restrict exports and soon will resume deliveries of new crop.

Last week the EU stepped up import and has gained 318 tons of Ukrainian corn, although since the beginning of the season, gained only 15.8 million tonnes, which is 13% less than the corresponding indicator of the previous MG, but is 20.5% higher than the average three-year level.

Ukraine per week reduced the exports of corn almost doubled to 412 thousand tons.