Corn prices are falling because of the uncertainty of agreement between the US and China

After 4 days of growth on the rumors about the purchase of Chinese state-owned companies a large batch of corn from the US, Monday futures on corn in Chicago has turned down on news of the postponement of the meeting of the presidents of the United States and China for April, may and June. In addition, prices under pressure the slow pace of exports.

For the week, the United States exported 795 thousand tons of corn that is 44.75% lower than the level in the corresponding week last year. Overall in the season exported 27.4 million tonnes, which was 25.7 percent more than last year. But within 8 weeks, the U.S. exported less than 1 million tonnes, which is required to achieve the projected volume of USDA experts.

Prices supports the cold weather with the floods in the corn belt of the United States, which can delay planting corn, which will lead to increasing areas of planting soybeans.

Agency FC Stone reduced the forecast of sowing areas of corn to 90.4 million acres, compared to 92 million acres in the USDA report, while the area under soybean is forecast at 87.7 million acres.

According to the CFTC report for the week speculators increased short positions in corn by 81 thousand to record 258,5 thousand contracts, which confirms the expectation of rising prices due to unfavorable weather during the planting season in the United States.

the Increase in forecast corn production in Argentina to 46-48 million tonnes pressure on the prices for deliveries in April and may continue to decline. According to forecasts of the stock exchange of Rosario, Argentina in March, exports 4 million tons of corn, which is 58% higher than the index of March 2018

the Pace of planting corn in Brazil exceed last year, already planted 91% of the area. Crops are in good condition.

Ukraine for the week increased corn exports by 32% to 899 thousand tons, but in the whole season, exported 18.4 million tons, which is 69% higher than the corresponding figure last year.

Thanks to the growth of the dollar purchase price for corn in Ukraine has increased at the port to 5050-5100 UAH/t, while exchange rates remained at the level of 158-159 $/t

the prices of the domestic demand for corn remain at 170-171 $/t FOB for shipments in April-may, but the market entry of cheaper Argentine corn can significantly reduce the demand for Ukrainian grain.