Prices for new crop corn continue to fall

Forecasted for the next 7-10 days precipitation on the background of low temperatures of 24-28 degrees in the corn belt of the United States will improve the conditions of ripening soybeans and corn, which will increase the potential of the crop. Corn crops have enough moisture, and the rate of maturation, higher than last year due to favorable weather conditions. This increases pressure on prices, which are already suffering from reduced purchases of grain by China.

failed quotes to support the increase in ethanol production in the U.S. last week by 5.2% to 958 thousand barrels/day, which corresponds to a consumption of 2.5 million tons of corn for a week, although analysts had expected it to rise only by 8 thousand barrels/day after the first during last 3 months of the fall last week.

the corn Futures on the stock exchange in the US in July decreased by 6.7%. Yesterday, September futures fell 1.77 $/t and 124 $/t in December – 1.47 $/t 128,7 up to $/t

Dry weather in Brazil has boosted corn second crop and increase volumes of export deliveries. During the week it was exported 1.1 million MT of corn, and in General in July and 2.74 million tonnes from the projected 4 million tonnes compared to July last year corn exports will decline by 1.9 million tons due to low harvest corn safrinha and higher domestic prices, due to the high demand for feed.

the November corn futures on the stock exchange in Paris traded at 163,25 €/t, however, the dollar price rose to 192,1 $/ton due to strengthening of the Euro.

Precipitation in Europe improved the condition of spring crops, especially maize, due to what experts MARS increased in the July report forecast corn yields in the EU to 8.21 t/ha, compared to 7.58 t/ha on average for 5 years, and also reduced its assessment of the import of grain to the EU.

Warm weather in Ukraine also contributes to the development of maize, while in the southern regions there is a shortage of precipitation, and next week will be only a little rain.

Forward price for the supply of Ukrainian corn to the port in October-November, remain at the level 143-148 $/t, but manufacturers are in no hurry contractualist, since lack of precipitation may reduce yield, especially against the backdrop of lower yields of wheat and canola.