Corn prices on weather factors increased by almost 6%

2021-06-02 12:07:33
Machine translation
Corn prices on weather factors increased by almost 6%

On the Chicago Stock Exchange, after a long weekend, corn futures rose 7.7% yesterday morning on rumors of frost damage to soybean and corn crops, as well as forecasts of hot weather in Brazil and the northwestern United States in the coming week. However, at the end of trading, updated data on the impact of frosts and the USDA report on crops slightly reduced prices. In general, for the day, July corn futures rose by 4.9% to 2 270.9/ton, and December – by 5.7% to.227.2/ton, but today they will continue to fall under the pressure of data on the state of crops and precipitation forecasts in the US corn belt.

 

In the northern plains of the United States at the end of last week, severe frosts significantly damaged crops that were already suffering from arid conditions. The temperature increase to 33-37 is predicted for the next 5-7 days OhC will lead to a decrease in yields in these regions.

 

In the southern states of Brazil (Mato Grosso do Sul, Sao Paulo and Paraná) there were light rains, which will be replaced by heavy rains next week. However, there is no precipitation in the central state of Mato Grosso, so experts are lowering forecasts for corn production. Agricultural agency reduced the harvest estimate by 4.6 million tons to 90.9 million tons compared to last year's 102.6 million tons due to a reduction in corn production of the second crop to 64.6 million tons, which is 17 million tons lower than the previous forecast.

 

Corn exports from the United States for the week increased by 17.3% to 2.049 million tons, and in general in the season amounted to 50.94 million tons, which is 22.2 million more than the corresponding figure last year.

 

After the end of trading, the USDA published a report on the processing of corn for ethanol, according to which in April the volume of processing decreased by 2.3% compared to march to 10.4 million tons, which is 67.3% higher than last year.

 

According to the weekly crop report, as of May 30, 95% of the planned area was sown with corn in the United States, compared with 92% last year and 87% on average for 5 years on this date. Seedlings were received by 81% (76% last year and 70% on average). According to the first NASS estimates, 76% are in good and excellent condition (67% last year), which exceeds the expectations of experts and is the best indicator of the last 3 years.

 

In Ukraine, purchase prices for corn delivered to the port in June remain at a high level of 2 270-275/ton or UAH 8500-8600/ton, while prices for deliveries of the new crop in November decreased to.235/ton against the background of improving the condition of crops due to heavy precipitation in May.

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