Corn prices continue to rise due to dry weather in Argentina

Dry weather in Argentina continues to support prices for soybeans and corn, as the crop condition is significantly worse than last year. Therefore, the amount of precipitation in January will be crucial for the future harvest.

This week in the country will be slight rain, which will not be able to improve the condition of crops, that analysts have once again lowered the forecast yield.

the Argentine Government has promised to lift the ban on export of maize until March 1, in the near future will reduce world prices.

water Temperature in the Pacific ocean due to the phenomenon of La Nina is 1-2 degrees higher than normal in the South of Brazil, in Argentina, Southern Plains and West Midwest dry weather prevails, which remains the main factor supporting prices.

With the beginning of the year on the stock exchange in Chicago futures on corn grew by 6% and crossed the psychological level of $5/bushel or 196,8 $/ton, but the March futures on Friday fell to 195,5 $/t

against the background of export restrictions from Argentina and the high price of Ukrainian corn are the most competitive in the coming months will be the U.S. corn, activates the purchase by traders of futures.

Long weekend in Ukraine has reduced the number of proposals on the world market, as sellers are stepping up the sale not earlier than January 15-20. As a consequence, the bid price rose to the $240/MT FOB, while the bid prices for the next delivery made 245-250 $/t FOB.

In the ports of Ukraine on the background of shortage of supply, prices, demand for corn last week rose to 223 to 230 were $/t or 7550-7700 UAH/t

future balance of supply and demand USDA, which will be corrected forecasts of corn production in South America and refined balance for the United States, can significantly affect prices.

On the average of a Reuters poll of analysts forecast of production for the United States will be reduced, but the export forecast remains at 67 million tons, resulting in the estimate for ending stocks will decrease to 40.6 million tons of Such adjustment by a decline in crop prospects in South America will lead to another increase in prices, resulting in reduced demand for corn.

in the last week of 2020 export sales of corn from the U.S. fell by 28% to 748,9 thousand tons and the actual export by 30% to 1.03 million tonnes in the season Just exported 15.2 million tons of corn, so to achieve the projected 67 million tons need to increase exports to 1.5 million tonnes per week, which is likely only in the case of reducing production in South America.