The price of corn new crop grow in spite of favorable weather conditions

corn Prices in Chicago rose slightly against the background of the hot weather last week in the corn belt of the United States, despite bearish USDA report, which downgraded its forecast for world corn production.

Next week in the Midwest USA and in Ukraine will pass rains and the heat subsides, which will create favorable conditions for corn crops.

In the USA the number of corn in good or excellent condition for the week decreased by 4% to 71% compared to 59% for this date last year, which also supported prices.

Growth of quotations was promoted by the Agency IEG Vantage, where the estimation of area under corn in the US was reduced to 94,13 million tons acre, which is far below the rating USDА – 97 million acres, however, on June 30 MSG will publish the revised data.

ethanol Production in the U.S. for the week grew by only 4 thousand barrels/day to 841 thousand barrels/day, which corresponds to the consumption of maize at 2.1 million tonnes, while analysts had expected a better performance.

the September corn futures yesterday rose to 132.6 $/t in December, up to 135.7 per $/t, whereas on the physical market prices remained at the level of 160 $/MT FOB.

the Demand for corn old crop from Asian buyers remains low, prices for delivery in Vietnam in July-August do not exceed 182-186 $/t CFR.

In Ukraine, the demand for corn of the old crop decreases and traders complete the purchase, although prices in the port remain at a high level 173-174 $/t or 5500-5550 UAH/t

in Spite of the good may rainfall and favorable conditions for the development of crops, the forward price of corn of the new harvest in Ukraine increased to 147-148 $/t at the port. Manufacturers are in no hurry contractualise since the low temperature may somewhat delayed the development of crops, so the prospects for the new crop are still unclear.