The purchase of corn by China supports the prices of the new harvest
Wednesday and Thursday, the U.S. corn market has received the new factors that let to restore prices after a fall caused by the July USDA report.
ethanol Production in the US is gradually recovering and is already close to dekorativnogo level that stimulates domestic demand for corn old crop.
the OPEC meeting+ was confirmed by the implementation of countries-participants of obligations on reduction of oil production, so prices for it in the near future will remain at $40 to $ 45/barrel.
According to the USDA, export sales of US corn for the week amounted to 981 million tonnes, of which China – 768 thousand tons, which corresponds to the expert expectations. Just season export sales amounted to 43.4 million tonnes projected by the USDA, 45 million tons.
corn Exports for the week amounted to 1 million tons, but in the whole season, until the end which remains for 7 weeks, amounted to 35.9 million tons.
In recent weeks, China has purchased 4 million tons of corn, mostly new crop, which raises hopes in the implementation of China's commitments for the purchase of agricultural products within the framework of commercial transactions, even despite the political disputes between countries and implemented trump sanctions against the leadership of the PRC.
Projected for current week heat wave throughout the Midwest United States eased precipitation, which reduced the pressure on the quotes.
the September corn futures on the stock exchange in the United States grew by 1.6 $/ton to of 129.9 $/t in December – 1.38 $/t to a total of 133.9 $/t
the Purchase by South Korea of the party of Brazilian corn for September delivery at a price of 196.3 per $/t CFR presses on quotations of American corn. The increase since August, proposals of corn from Argentina and Brazil would further aggravate the pressure.
In Ukraine, the price of corn new crop remain at the level of 148-152 $/t for deliveries in the port in November-December and corn in China, the premium is 2-3 $/t