The lack of demand lowers corn prices

may bear the USDA balance sheet for corn continues to put pressure on the market, and traders trying to find factors which could increase demand for the grain amid growing suggestions the corn of the old crop and prospects for a record harvest in the new season.

the Gradual economic recovery in the US augurs well for a recovery of demand for automotive fuel, in particular ethanol, in the near future, and this will increase the consumption of corn.

Fall in ethanol production in the US stopped, and for the second week shows a slight increase against the background of increasing of the refining margins caused by lower prices for corn and higher prices for ethanol after the recovery of oil prices.

last week ethanol production increased by 3.2% to 617 thousand barrels/day, which corresponds to a consumption of 1.59 million tons of corn/week. For the previous 10-11 weeks consumption of corn manolovo industry decreased in comparison with the corresponding period last year to 10-11 million tons, while the experts, the USDA lowered the estimated consumption of corn for ethanol in the current season by 13 million tonnes to 125,7 million tons. Recovery of the level of ethanol production will take place no earlier than mid-summer, when most companies return to normal operation.

ethanol Stocks in the U.S. last week fell by 1.4 million barrels to 7-week low of 24.2 million barrels, as refineries reduced proposals to support prices. However, the introduction of import duties on ethanol from the United States of Colombia, which is the main buyer, will reduce the supply volume.

the Market for U.S. corn supported the resumption of purchases by China, which increased the import quota for corn by 2 million tonnes to 9 million tonnes it is Expected that China will buy U.S. corn within the transaction.

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June corn futures in Paris dropped by 0.25 €/t to 164,25 €/t, and November by 0.5 €/t to 178,36 €/t

• July futures on corn in the U.S. yesterday fell 1.6 $/t $125/t in December – 1.28 $/t of 130.7 to $/t

According to the agriculture Ministry of France, maize in the country planted 1.6 million ha, which is 10,9% higher than last year. Recent rainfall improves crop prospects for 2020, forecast by the experts, the USDA increased 2.2% to 68.3 million tons.

In Ukraine, the price of demand for corn falls after the world however, producers refuse to sell grain even at a higher price 163-165 $/t or 5170-5350 UAH/t, which private traders offer to execute the may contracts.

Export prices of demand on the supply of Ukrainian corn in may and June do not exceed 170 $/t FOB. Therefore, it is likely, traders will pay export program for corn following wheat prices, which continue to fall.

Export of corn from Ukraine for the week fell by 18% to 591 thousand tonnes, and since the beginning of the season was 27.2 million tonnes, to 2.07 million tonnes over last year's pace.