Corn prices fall despite an increase in export sales

it is Possible to reduce the volume of trade in cereals and oilseeds, due to the spread of a new coronavirus led to lower prices for soybeans, wheat and corn.

From the sharp collapse of the corn market has kept the intensification of export sales from the U.S., which for the first time in 2020 reached the level of 1.06 million tons, which exceeded expert expectations.

the Actual exports of corn from the U.S. last week fell by 28% to 392,1 thousand tons, while export sales since the beginning of the season amounted to 20.3 million tons, compared with 32.3 million tons at the same date last MY.

the Main buyers of U.S. corn last week were Japan, which increased purchases to 372,6 thousand tons, Mexico – 269,9 thousand tons, Colombia – 154,5 thousand tons, Guatemala, Taiwan and South Korea.

After the signing of the trade agreement between the US and China, revealed that Chinese buyers have purchased a batch of corn on the Pacific coast of the United States, which will be reflected in the statistics this week.

the Growth in demand for U.S. corn and confirms that it is highly competitive in comparison with Ukrainian corn, which is also present in the market. Us traders are stepping up sales to sell volumes before the advent of new crop South American corn.

the corn Futures in Chicago fell on Friday 2.4% to 150,4 $/t, whereas on the physical market, the prices remain at the level of $180/t FOB US Gulf.

the Increase in maize prices in Ukraine last week to 186-188 $/t FOB due to higher prices in South Korea, where tenders corn has risen by 5-6 $/t to 220-221 $/ton for April shipments.

According to the agriculture Ministry, in comparison with the corresponding period of the previous season Ukraine increased corn exports by 29% to 14.9 million tonnes, of which 682 thousand tons were shipped in the last 4 days, which confirms the high demand for domestic grain.

Russia also is stepping up the pace of corn exports, and since the beginning of the season, sold 1.8 million tonnes, which is 33% higher than the previous MG.