Despite the decrease in demand of corn prices continue to rise

2020-12-24 12:04:19
Machine translation
Despite the decrease in demand of corn prices continue to rise

the price of corn on the exchanges and physical markets continue to grow after the prices for soybean meal, which heats strike in Argentina. The increase in feed cost in turn increases the stock prices for pork, but their further growth is limited by uncertainty in the markets due to the strengthening of quarantine and lockdown.

 

two days March corn futures on the stock exchange in Chicago rose 1.6% to 176,5 $/t on the background of recovery in oil prices and drought in Argentina.

 

rising prices for soybean meal to 10.5% in two weeks, as the ongoing strike in Argentina, which is the main world supplier of this commodity, support prices for feed crops, particularly corn.

 

Weekly export sales of corn from the US has disappointed Forex traders and made up the smallest in the season 651 thousand tonnes, while total sales for the season amounted to 62.7% of the USDA forecast. The main reason for the decline in demand was the absence of purchases from China and Mexico. This season, major buyers of U.S. corn were China (11.5 million tonnes), Mexico (9.6 million t) and Japan (5.1 million tonnes), which accounted for 40% of the USDA export forecast for the season.

 

the Actual exports of corn from the U.S. for the week decreased by 13% to 835,7 million tonnes, of which 272 thousand tonnes shipped to China. Since the beginning of the season exported 12,89 million tonnes from a projected 67 million tonnes of corn.

 

with the markets under pressure from the uncertainty of the import of corn in China, which analysts estimated at 20-24 million tons and the USDA in December was estimated at 16.5 million tons, China has acquired in the United States to 12 million tons of corn from the expected 16 million tonnes, and Ukraine 3 million tons from the estimated 6-7 million tons and now will start to buy corn in Brazil. Demand for corn from China is reduced by the background of auctioning corn from state reserves held in the country this week.

 

Prices on Ukrainian corn exceeds the price of the us by 10-15 $/t and $ 230 $/ton FOB, which is the price 255-260 $/t C&F for delivery in Asia and 240 $/t C&F for delivery in Europe. Due to high prices the demand for domestic maize from the European countries remains low, and they expect cheaper corn from the new harvest from South America.

 

the January futures for the European corn MATIF rose yesterday by 2 €/t to 197 €/t or 240,4 $/t, while March traded at 194,75 €/t or 237,7 $/t

 

Favorable for planting corn conditions were formed in PAIRS, against the background of high prices will increase the sowing area by 10-15% and the harvest of 15-16 million tonnes.

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