Corn prices stood under the pressure of the collapse of oil prices

2020-03-10 12:05:26
Machine translation
Corn prices stood under the pressure of the collapse of oil prices

Using significant amounts of corn in the production of ethanol makes the price of grain is dependent on the price of oil, which over the weekend has fallen by 34%.

 

However, compared to financial markets prices for agricultural products declined moderately. Most dropped the price of sugarcane by 7%, soybean oil 5%, while soybeans fell by 2.2% and corn declined 1.5%.

 

Reduction in demand for "energy crops" - sugar cane, soy and corn from producers of ethanol and biodiesel against the backdrop of falling oil prices and the refining margins will increase the supply of these goods for the food consumers. However, caused by the epidemic Covid-19 reduction of tourist flows and mass actions will reduce the consumption of foods and lead to an excess of food.

 

oil Prices yesterday recovered by 7%, which supports the markets of agricultural products. However, experts do not expect the price rebound to previous levels as crude oil prices will remain low for 7-8 months.

 

However, the drop in oil prices lowers the cost of freight, so importers can buy grain cheaper, saving on shipping costs, which will increase demand in the near future.

 

the May corn futures on Monday rebounded to 147,79 $/t support for an increase in the weekly exports of corn from the US by 4.5% to 830 million tonnes, including boost exports from the West coast to Japan and South Korea. However, price pressure cheap offers South American corn.

 

Purchase of South Korean manufacturers of feed on the tender of 200 tonnes is likely of South American corn for delivery in July at a price of 204,5-207 $/t C&F increases the pressure on export prices for corn in the United States and Ukraine.

 

it is Expected that against the background of global situation, the price of maize in Ukraine today will decrease in port before 162-165 $/t, after rising last week to 165-167 $/t

 

According to experts, Bolsa de Cereales de Buenos Aires, after the increase in the government of Argentina export duties on soy and its by-products 3% to 33% in the country will increase the acreage of corn and reduced acreage of soybeans.

 

the Increase in the projected area of planting corn in the USA and Ukraine is also adding pressure on prices of newly harvested corn.

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