Corn prices in the US grow through long-term rainfall

2019-05-27 12:06:33
Machine translation
Corn prices in the US grow through long-term rainfall

Trading on the stock exchange in Chicago on Friday intensified before the long weekend (Monday the US celebrated memorial Day).

 

On the background of predicted precipitation in regions of growing corn in the Midwest United States, which delayed sowing will lead to decrease in acreage and crop July futures on corn grew by 4.8% to 159,1 $/t in December – to 164,95 $/t, which was the annual maximum.

 

Traders try to predict the number of corn crops in the U.S., but official numbers will not appear until Tuesday, since Monday is a day off, so speculators will continue to heat up the market.

 

High water level in the rivers prevents movement of corn by barge to ports. According to the agriculture Ministry, in the last week the volume of annual shipments declined relative to the average 3-year index over the same period by 60%. Delay supply of maize to the ports and the increase in the price of futures has led to higher prices on the physical market FOB US Gulf, but it has restricted a significant number of proposals from Argentina and Ukraine, which has stepped up exports amid higher prices for corn in the United States.

 

According Agrisensus, the price of Argentine corn rose 3 $/t 161 $/t FOB Argentina.

 

In Ukraine last week, the demand for corn increased. Buyers to attract the volumes needed to perform the contracts, raised the price of 1-2 $/t most of the traders in June completes the purchase of corn, and proceeds to the purchases of barley and wheat of new harvest, so corn will continue to work only a few terminals.

 

Ukraine may export a record 3 million tons of corn. Purchase prices at the port Friday amounted to 161-162 $/t or 4950-5000 UAH/t, but this week can grow with the support of the Chicago stock exchange and the strengthening of the dollar on the interbank market.

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