Corn prices got a new factors supporting

in anticipation of the release of a new USDA report corn prices in Chicago gradually grow on the data about the deterioration of crops and unfavorable weather conditions in the United States, and to increase the consumption of ethanol in 2020

the Amount of corn in good or excellent condition for the week decreased by 1% to 56% compared to 68% last year. Ripe, only 58% of crops compared to 92% in 2018 and 85% average over 5 years as at October 7, cleaning is performed for only 15% of the area compared to 33% in 2018 and 27% on average for 5 years. Next week dry and warm weather in the corn belt of the United States will accelerate the fee, however rain with snow in the Northern States can lead to the loss of not collected 10% of spring wheat crops and degrade the state of soybeans and corn.

trump Promised measures to stimulate biofuel production will ensure that in 2020 the consumption of 16 billion gallons produced from corn ethanol, 1 billion gallons higher than the current mandate, however, 4 billion gallons less than it could be, if not provided incentives to refiners.

the December corn futures rose yesterday by 3% to 155,2 $/ton, the March – up to 159.5 $/t

Traders expect the new USDA report, since the September balance forecast of production was much higher than the estimates of other analysts. In addition, in late September, the USDA sharply lowered the forecast initial stocks of corn in the U.S. to 53.7 million tons, although at the beginning of the month was estimated at 62.1 million of them so If in September, the Wasde corn yield was estimated at 168,2 bushels/acre, and analysts in was 167.2 bushels/acre, but now the experts on average forecast it at the level of 166,4 bushels/acre, the gross yield within 346,7 million tons, and area for harvest at the level of 81.5 million acres.

Decrease in initial stocks and the corn harvest in the US amid growing demand from manolovo industry will lead to a jump in domestic prices and reduce exports. This will increase the chances of Ukrainian exporters of corn, for which demand is quite low, since EU is the main buyer of domestic corn, recently purchased significant quantities of cheap South American corn.

Purchase price of Ukrainian maize rose in port before 148-150 $/t, while prices for delivery this season rose to 162 to 164 $/t FOB.