Corn prices remain under pressure from falling demand and increasing sentences

the Increase in forecasts of world production and reserves with the decline in consumption continues to lower the price of corn.

Experts IGC increased in comparison with the previous report forecast the global corn stocks in 2020/21 MG from 274 to 280,9 million tons due to reduced domestic demand. In particular, the stocks will rise in China from 163 to 166 million tonnes, with of 64.3 to 68.3 million tons, Ukraine with 0,5 to 1,5 million tons, South Africa with 2 to 2.2 million tonnes, While they decreased in Argentina from 4.7 to 3.8 million tons, Brazil – from 4.6% to 4.4 mln t, the EU (excluding the UK), from 5.1 to 4.9 million tons.

the Forecast of world maize exports in 2020/21 MG increased by 2.3 million tons to 172.5 million tonnes, in particular in Brazil, from 34 to 34.5 million tonnes and the United States-from 58 to 58.5 million tonnes, while the estimate of world production left at 1,157 billion tons.

the European Commission has reduced the forecast of maize production in 2020/21 MG 0.5 million tons to 69.5 million tons, 1.6 million tons will exceed the average 3-year average. Imports fell by 14.4% to 16.6 mln t in comparison з19,4 million tons projected for 2019/20 Mr.

For the week, the EU imported 304,97 thousand tons of corn, and since the beginning of the season to 17.5 million tonnes, which is 14% lower than the level 2019, but 17% higher than the average 3-year average.

Sowing corn in the US because of favorable weather is coming at a record pace. As of may 3, planted 51% of the area compared to 21% last year and 39% average for 5 years at that date.

After the publication of these data, the July corn futures fell 2.3%, but later increased to 124,25 $/t, registering a daily decline at 1.1%.

the Market has supported an increase in the weekly exports of corn from the US to 1.2 million tons, which is 45% higher than the average of the current season – 672 thousand tons. However, the deterioration of relations with China reduces the rate of corn exports from the United States.

Since the beginning of the season, the United States exported 23.5 million tonnes of corn, which is 34% lower than in 2018/19 Mr on the same date – 35.6 million tons.

Ukraine per week exported 906 thousand tons of corn, but in the whole season, 26.4 million tonnes, which is 8% higher than the corresponding period last year. Export growth are gradually declining amid falling prices, which could prevent export of the projected 31 million tons.

a Decline in export prices on Ukrainian corn from 180 to 168-170 $/MT FOB for may shipments almost stopped the export. Manufacturers do not want to sell corn below 5200-5300 UAH/t or 162-166 $/t at the port, where traders offer to execute the agreements. The fall in export prices will lead to lower purchase prices in port before 159-160 $/t or 5000-5150 UAH/t. the Processors for the accumulation of reserves also gradually drop the price after export.