Active export and weather support corn prices in the near future

the Market for U.S. corn remains under pressure from low demand amid robust exports of corn from Brazil and Ukraine and delay the harvest in France and the United States.

In the U.S. as of November 17, the corn threshed by 76% of the area, which is 10% higher than last week, but lower than the level of the previous year by 13% and the average 5-year rate by 16%, while traders expected the crop will gather at 78-80% of the area.

Rain in the corn belt of the United States in the next 7-10 days will delay the harvest. The situation is particularly critical in the States of North Dakota, where it threshed only 23% of the area, Michigan – 39% In Wisconsin, 44% of South Dakota is 53%.

For the week, corn exports from the U.S. grew by 9.5% to 637,4 thousand tons, which is 32% less than the indicator on this date in 2018, the Intensification of imports from Mexico, which acquired the 58% of this amount, supported prices. Since the beginning of the season, the United States exported 4.98 mn tons of maize, which is 58.4 per cent smaller than on that date in 2018.

the corn Futures in Chicago yesterday fell to 148,58 $/t on the news about the purchase of South Korean refiners Brazilian corn at a price 213,2 $/t CFR for delivery in February.

On the world market, intensified competition between sellers, so the prices will be able to support only weather factor, because the precipitation delay Assembly that can lead to loss of yield or quality deterioration of corn in the United States.

In Ukraine as of 18 November, from 4.6 million ha, or 92.4% of harvested acreage of 32.5 million tons of corn with a yield of 7.06 MT/ha (of 7.59 t/ha in 2018). For the week, corn exports doubled to 789 thousand tons, and from the beginning of the season made up of 5.81 million tonnes to 1.92 million tonnes higher than in the same period last MG.

caused by Using rainfall delayed harvest in France, the European Union is more active than last year, imports of corn. According to FranceAgrimer on 11 November, the corn was threshed on 85% of the area, although this is usually the time it is collected in full.

the European Commission reports that for the week, the EU imported 385,2 thousand tons of maize, and since the beginning of the season to 7.7 million tonnes, which is 14% higher than last year. The share of Brazilian corn in this volume is 55%, Ukraine – 35%. At the same time Ukraine is intensifying supplies to the EU.

Prices of Ukrainian maize rose to 170 $/t FOB, while the bid price remain at 165-166 $/t FOB for December deliveries. In the ports of the purchase price remains at 154-156 $/t or 4450-4500 UAH/t, but most terminals will not accept the grain because of the lack of available vessels. A significant volume of proposals allows traders to control prices. However, the active exports on the back of lower offers in December and January could lead to price increases.