Corn prices fall after the price of oil

2020-03-18 12:19:58
Machine translation
Corn prices fall after the price of oil

After the fall of the financial markets on Monday at 10-12%, the US government yesterday promised to another business support measures, allowing stock indexes rose 6%.

 

the oil Market suffers from tension between Russia and Saudi Arabia, as well as saracennia demand as a result of the suspension of flights between the countries due to pandemic Covid-19. The price of Brent crude oil yesterday fell 7% to 28.5 $/barrel, while U.S. crude oil prices Monday fell by 13% to 26,4 $/barrel. Due to the low prices, some countries began to refill their strategic reserves that will soon support quotes.

 

Following the oil market collapsed and the price of corn used for the production of biodiesel, the meaning of which is lost because of these low oil prices.

 

the corn Futures in Chicago last week survived the fall of the stock market and oil prices by 50%, but since the beginning of this week fell by 7% to 135,1 $/t for the may contracts.

 

restriction of movement in the United States will reduce demand for gasoline and the amount of processing of corn for ethanol. Amid slow exports it will increase the grain reserves in the country.

 

Rumors about the demand for U.S. corn from China did not materialize and the expected traders boost exports after the signing of trade agreements has not occurred.

 

Korean manufacturers of optional origin feed and FLCна the background of falling world prices has acquired a batch of corn supposedly of South American origin with delivery in July at a price of 200 $/t C&F and delivery in August at a price of 190 $/t C&F.

 

Experts are beginning to reduce the forecasts of corn production in Brazil through drought conditions during planting and hanging from the second crop of corn after optimalni of time, which keeps domestic prices at a high level, which they reached after a sharp decline in ending stocks, due to active exports last year.

 

pressure exchange in Chicago export prices on Ukrainian corn fell to 170-172 $/t FOB for shipments in April-may. Purchase prices at ports since the beginning of the week dropped to 3-4 $/t 157 and 158 to $/t or 4900-5050 UAH/t. the devaluation of the hryvnia by 10% raises UAH purchase prices, so the manufacturers stimulate sales.

 

Ukraine exported in March, 1.6 million tons of corn, and the whole season is 21,38 million tons,which is 21.4% higher than the corresponding period last year. The government argues that the quarantine will not affect exports and ports will work normally.

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