Pressure on prices of newly harvested corn increases

2020-07-23 12:35:33
Machine translation
Pressure on prices of newly harvested corn increases

a New political tensions between the U.S. and China may become a significant factor of pressure on the prices of corn, and so remain under pressure from the prospects of high yields in the U.S. amid favorable weather.

 

Additional factors are the pressure - reduced processing volumes for ethanol and rising corn exports from South America.

 

the US state Department has unexpectedly demanded that Beijing close to the Chinese Consulate in Houston for three days, citing the need to protect intellectual property, confidential information and copyright of American citizens. In response, the Chinese government decided to take action and shut down the US Consulate in Wuhan.

 

a New round of political disputes between countries may cause reduction in China's pace of purchases of agricultural products from the United States, which intensified in recent weeks and became the factors of rising prices for soy and corn on the U.S. exchanges.

 

the last Precipitation over the past week on the territory of the "corn belt" of the US reduced the stress from hot weather and improved the condition of corn crops, and the forecast for next week shows no precipitation at low temperatures at the level of 26-28 degrees. According to analysts the average corn yield in the United States can be increased in the August USDA forecast, compared with the July estimate.

 

the Condition of crops of corn in the US remains at 69% rating them as good to excellent compared to 57% last year on the same date, the maturation rate is much higher than last year and the average for 5 years. On July 19 flowering of maize observed on 59% of crops compared to 54% on average for 5 years and 30% last year on the same date.

 

the Continuing rapid spread of the coronavirus Covid-19 in the United States, where in recent days there have been about 74 thousand cases of infection, and the total number of people infected has reached 4 million people, increases the anxiety of the traders on the return of quarantine measures in some States that will lead to a new round of falling demand for oil and gasoline.

 

Yesterday for the first 4 months of ethanol production in the U.S. fell by 23 thousand barrels per day to 908 thousand barrels per day, which corresponds to processing about 2.3 million tonnes of maize, despite the fact that analysts expect growth to 950 thousand barrels per day. After the introduction of the quarantine, the ethanol production has fallen by 50% and slowly recovered in recent months.

 

the corn Futures yesterday reacted to the news on the reduction of ethanol production and rising political tensions with China grew in September by 1.87$/t to 128,73$/t in December and 1.57$/ton to of 131.33$/t

 

Brazil continues to increase exports of maize and 3 weeks of July already exported 1,731 million tonnes, with exports for the third Sunday of the month was 113% more than in the previous 2 weeks. However, the average daily shipments of corn in July 2020 is only 133,156 thousand t is 48.6% less than the same indicator of July 2019.

 

the Greatest activity now showing South Korean refiners, which mainly purchase of South American corn at prices around 188-195$/t C&F for delivery in November and December, as prices of maize from the United States remain above 4-5 dollars, and for increased export sales by American farmers will have to reduce the prices of new crop, with large stocks of the old one.

 

Prices for the Ukrainian corn new crop remain at the level 147-151$/t delivery port in October, but farmers are in no hurry to sell, considering these price levels are low enough.

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