Corn prices fall as increased collection

2019-10-22 13:01:40
Machine translation
Corn prices fall as increased collection

Dry and warm weather in the corn belt of the USA and Ukraine contributes to the harvest of corn, but after a week it will change precipitation and decrease of temperature with night frosts.

 

According to USDA, as at 20 October in the USA corn is collected on 305 areas, compared with 48% at that date in 2018 and 47% on average for 5 years. The number of crops in good or excellent condition for the week increased by 1% to 56%, while a year ago the figure was 68%.

 

the Improvement of crops and the statement of the Minister of Commerce about a possible postponement of the date of signing trade agreements with China from 16-17 November at a later date puts pressure on prices. They do not support any increase for the week, export sales of corn from the US by 10.6% to 531,7 million tonnes, as total exports in the season is only 3 million tons, which is three times inferior to the index on this date last year.

 

the December corn futures in Chicago yesterday fell 1.3% to 151,96 $/MT amid low demand from Asia and Mexico, as well as the increase in exports from Brazil.

 

U.S. corn loaded on the ship, offer 174-175 $/t FOB US Gulf, while Brazilian – 170 $/t FOB.

 

Brazil for 9 months 2019 exported 30,104 million tons of corn that at 138.4% higher than the corresponding figure 2018 Over the past 12 months, exports amounted to 40 million t, which is a record for the country.

 

the Main buyer of Brazilian corn is the EU, which increased corn imports in comparison with the previous MG 27% and 61% acquired in Brazil. Last week, the EU imported the largest since the beginning of the season the volume of corn – 400,5 thousand tons

 

Ukraine last season was the main supplier of corn to the EU and hopes to regain leadership in the current MG. However, the high corn prices of the old crop and expectations of higher prices amid lower production forecasts are holding back sales. Prices of domestic corn has grown to 163-165 $/t FOB, but still remain the lowest in the world.

 

As of October 21, in Ukraine with 58% of the area harvested 19.1 million MT of corn with a yield of 6.63 t/ha On this date last year was threshed 62% of the area, and the yield was of 6.82 t/ha. a Slowdown in harvest due to slower exports due to the low purchase price and logistic problems in the ports.

 

the Purchase price for corn in Ukraine remain the same as last year 152-153 $/t CPT-port, but in the national currency they decreased over the year for 500-550 UAH/t to 4400-4450 UAH/t due to the dollar's decline from 26.5-27 UAH/$ to 247,8-25 UAH$.

 

In Russia on October 21, from 57.8% of the area harvested 8.8 million MT of corn with a yield of 5.91 t/ha (4,65 t/ha in 2018), which will increase the export of Russian corn in the current season and will increase competition in the black sea region.

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