Delay harvesting in the US supports corn prices

Long-term rainfall delayed corn harvesting in the United States and France, and the predicted next week, the rain with snow will be a powerful factor supporting stock prices.

As of November 18, in France, the corn threshed by 88% compared to 84% last week and 100% on average on that date. Most of the collection stays in Brittany and in the South-West of the country.

According to the weekly report, USDA, on November 24, corn in the U.S. collected by 84% of areas, compared to 93% last year and 96% on average for 5 years at that date. During the week the farmers have threshed only 8% of the area with corn since primarily collected soybeans in anticipation of the promised frost and snow.

slowest harvest in North Dakota, where it threshed 30% of areas, compared with 91% average in Michigan – 59% (83%), Wisconsin – 57% (85%), South Dakota– 68% (96%).

MSG Report unveiled after the market, therefore it will affect the stock exchange today. Likely, speculators are stepping up purchases before the weekend is Thursday and Friday amid predictions of worsening weather.

Despite the pressure from weak exports yesterday, December corn futures in Chicago rose to 149,36 $/t with the support of the growth of the wheat market.

corn Exports from the U.S. for the week decreased from 651 to 604,59 thousand tons, which is far less than 1,182 million tons exported during the same period last year. The main buyers this week have Mexico and Colombia, which has acquired 75% of U.S. corn. Since the beginning of the season exported 5,598 million tons of corn, which is 57,48% below last year's figure.

In Ukraine from 95.3% of the area harvested 33.6 million MT of corn with a yield of 7.09 t/ha. corn Exports for the week rose by 9% to 859 thousand tons Increase logistical problems associated with the lack of ships or their load slowly due to storms. Almost all terminals have stopped receiving, which led to a 3-4 day queue for unloading vehicles.

the price of corn in the port remain at the level of last week, 155-156 $/t or 4400-4480 UAH/t With delivery in Dec corn is offered at 167-168 $/t FOB, which indicates the absence of prospects of growth of prices.

the European Union has reduced the weekly imports of corn to 352,137 thousand tons the Volume of imports in the current season is 10% higher than last year and amounts to 8 million tons, of which 35% of Ukrainian grain, 65 percent in Brazil.

the Pace of planting in Argentina and Brazil correspond to the level of last year, and the weather favors the development of crops, so buyers are in no hurry to buy that corn, waiting out the market in March-April more cheap and high quality South American corn.