Corn prices remain stable due to lack of demand

amid rising wheat prices over the last 2-3 weeks at 10-15 $/t quotations of maize have remained almost unchanged through lower export demand.

the Intention of China to allow duty-free import of 10 million tonnes of soy from the United States supported oilseed prices. In addition, traders expected increased demand from China for U.S. corn within the progress made in the negotiations of the agreements.

corn Exports from the US is significantly less than last year, so now traders are more interested in actual customer demand, not forecasts of production. Major hopes for increase of domestic consumption of corn manolovo industry in the coming weeks.

the December corn futures in Chicago yesterday rose to 153,3 $/t on data on the increase in ethanol production.

According to the EIA, ethanol production in the U.S. last week increased by 25 thousand barrels/day up 996 thousand barrels/day, however for five consecutive weeks they have not reached 1 million barrels/day, while in 2016 consistently exceeded this level. Last week the profitability of recycling grew to its highest for the year, and now industry weekly 2.64 million tons of corn.

Biofuel companies and corn growers filed a legal claim at 31 failure in August from the use of ethanol for blending for refineries. Lawyers are self-explanatory, as calculated and reported loss of 1.5 billion gallons of biofuel demand, obligation of use in 2018.

the administration of the tramp accused of the massive increase in failures for refineries to deterioration of the biofuel industry, because since his inauguration in January 2017, the demand for ethanol was artificially lowered by 4.5 million gallons, and the oil refiners received an additional income.

Factor supporting prices was the resumption of demand from South Korean feed producers who purchased two batches of corn by 69 thousand t in February-March at a price of 204 and 206 $/t CFR, which corresponds to the level of prices for delivery in October-November.

Ukraine for the week increased corn exports by 68% to 473 thousand tons and since the beginning of the season sold to 2.76 million tonnes, which is by 37.4% more than the corresponding figure 2018, the Demand for corn decreases as you move cleaning and increased supplies in the near future may lead to a fall in prices.