Corn prices fall under pressure increase proposals

the Increase in the supply of maize, particularly Argentina, on world markets lowers the demand price. Further putting pressure on them easing logistical problems caused by the frosts and snow in the United States and Ukraine.

corn Exports from the U.S. for the week decreased by 7% to 901 thousand tons, representing a 17.5% lower than the level of the corresponding period last year and corresponds to the peer expectations in the range of 900-1100 thousand tons the Major buyers of U.S. corn are Japan and Mexico, while South Korea, which usually buys significant volumes of grain in the United States, the second week does not conduct procurement in anticipation of lower prices.

the March futures on corn in the United States remain at 149,44 $/t. prices pushing growth proposals from Argentina, while China is in no hurry to buy American corn.

In Ukraine, the demand price of corn on FOB dropped to 2-4 $/ton, as a result, prices in the ports fell by 2-3 $/t 168-169 up to $/t. Due to the sharp strengthening of the hryvnia prices in the ports dropped from 5650 to 5500 UAH/t During the week Ukraine has reduced exports of corn by 17% to 586 thousand tons.

supports Multiple prices strong demand from the EU, who last week increased the import of corn by 5.5% to 601,9 thousand tons and since the beginning of the season has already purchased of 14.64 million tonnes, 45% more than last year.

Due to the dry weather in Brazil's soy is assembled with 19% of the area compared to 6% in average, which will accelerate the corn second crop. The increase in acreage under maize in Brazil will lead to production growth that will put pressure on prices in the second half of the season.

the Agency FCStone increased the forecast of corn production in Brazil this season to reach 92.4 million tons and exports – up to 30 million tons.