Corn prices under the pressure of oversupply are looking for factors of support

Recovery of oil prices, some supported corn prices in the United States, but the stop of the processing of corn for ethanol, the results of the tenders, which won the South American corn, and expectations the USDA report, which is likely to be bearish, continue to put pressure on the world price of grain.

the May futures on corn in the US after falling on Monday to 129,2 $/t yesterday recovered to 133,2 $/t with the support of the growth in oil prices and the optimistic statements made by trump that the US has already passed the peak of the epidemic Covid -19. Now the country's infected with 400 thousand people, and the number of deaths amounted to 12.7 thousand, of which only for the last day died a record number of 1736 people. So while the US remains in quarantine, which reduces the demand for fuel and ethanol.

Traders expect today's report on ethanol production in the US will once again cut the amount of corn processing, since most companies stopped using negative refining margin. Reduce the volume of corn processing has increased the demand for waste corn DDGS, the price of which rose to the level of 160% of the cost of the corn!

the Softening of quarantine in China and other Asian countries increases the demand for food, especially meat, which activates the consumption of corn. Yesterday, the South Korean company of optional origin and KFA bought corn probably of Brazilian origin for delivery in August-September at a price 185-187 $/t C&F and in 181.8 $/t C&F.

In Brazil amid strong demand from the livestock industry and the low of the first crop of corn and as a result of a record devaluation of the real to 5.28 R/$ domestic price of corn reached the highest level of 192 $/t, which could force the country to import corn from Argentina. Late sowing of maize second crop can reduce yield, which also supported prices.

as a Result, the increase in the supply of Argentine maize on the world market prices of demand for grain in Ukraine decreased to 176 to 178 $/t FOB. The strengthening of the hryvnia and the decrease in purchase prices at the port to 166 to 168 $/t or 5400-5500 UAH/t reduced the volume of offers from the manufacturers.

Export of corn from Ukraine for the week increased by 54% from 518 to 796 thousand t

Russia for a week has increased corn exports by 81% from 97 to 177 thousand tons, but it can slow down due to the weekend in the Federal center of standardization and Metrology, issuing phytosanitary certificates.