Corn prices rose by 5.5% and recouped the previous drop

2021-05-28 12:06:13
Machine translation
Corn prices rose by 5.5% and recouped the previous drop

Yesterday on the Chicago Stock Exchange, corn prices rose by 6%, having won back the fall on Tuesday. The reason was the first online meeting of trade representatives of the United States and China, at which plans were agreed to fulfill the terms of the first phase of the trade agreement. China also promised to import 22.8 million tons of corn from the United States in my 2021/22.

 

Chinese importers have already purchased 5.1 million tons of corn from the 2021 harvest in the United States, and data on new purchases provide strong support for prices. On rumors about China's intentions to tighten price controls and cancel the previous purchase by private companies of 1 million tons of corn excluded from duty-free import, corn prices fell by 6% on Tuesday.

 

Despite light precipitation in Brazil, analysts continue to lower their forecasts for second-crop corn production. Now they have been reduced to 66-70 million tons compared to the official forecast of 80 million tons, which increases pressure on the quotes of the old crop.

 

Yesterday, July futures rose 5.5% to.259.4/ton on the Chicago Stock Exchange, while December futures rose 4.8% to. 214.9/ton, offsetting the drop since the beginning of the week.

 

The market was supported by data on weekly export sales of corn from the United States, which exceeded expert expectations and amounted to 556 thousand tons of old grain and a record 5.69 million tons of new crop, of which 5.3 million tons were purchased by China.

 

Export sales of corn in my 2020/21 amounted to 68.58 million tons out of the projected 70.5 million tons, and sales of new crop corn reached 14.6 million tons, compared to the export forecast for my 2021/22 at 62.2 million tons.

 

Actual corn exports from the United States for the week decreased by 16% to 1.85 million tons, of which 847 thousand tons were shipped to China, and in general in the season amounted to 49.1 million tons, which is 77% higher than last year's pace.

 

In Ukraine, after the previous drop, purchase prices for corn following Chicago increased to 2 270-275/ton or UAH 8450-8500/ton for deliveries to the port in May – June and.240-245/ton for deliveries in November. At the same time, supply prices rose to F 300/ton FOB, although demand prices from Asian buyers who have the opportunity to purchase cheaper feed wheat do not exceed.310/ton.

 

A significant amount of wheat supply in the current season will compensate for the shortage of corn supplies from Brazil in July – August, and then corn from Ukraine and the United States will enter the market, where production will increase this year.

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