Active demand raises prices for new crop corn

2021-05-06 12:03:59
Machine translation
Active demand raises prices for new crop corn

< span style="font-size:14px;">against the background of the deterioration of the prospects for the corn harvest in Brazil, traders understand that this season there will be no cheap grain again, so they are actively buying new crop corn, as a result of which December futures on the Chicago Stock Exchange yesterday rose by 9 9.5/ton to 2 237.8/ton, while July futures-only by 4 4.6 / ton to 2 278.7 / ton.< / span> < / p>


< span style="font-size:14px;">quotes were also supported by data on export sales of old and new crop corn from the United States to China and Mexico, as well as an increase in ethanol production, which increased by 7 thousand barrels/day to 952 thousand barrels/day over the week, although ethanol reserves simultaneously increased by 704 thousand barrels to 20.44 million barrels. If today's report on export sales for the week is higher than traders expected, then corn prices will get a new boost to growth.


< span style = "font-size:14px;" >in Ukraine, forward prices for corn supplies in November – December increased to 2 245-250/ton, following wheat prices, which for July deliveries are 2 245-250/ton.< / span> < / p>


< span style="font-size:14px;">purchase prices for old-crop corn have reached порту 270-273/ton or UAH 8500-8650/ton in Porto, but sellers are holding back sales in anticipation of further price increases. In my 2020/21, Ukraine exported 19.1 million tons of corn, and may ship another 5 million tons by the end of the season.


< span style="font-size:14px;">Argentina has accelerated soybean harvesting, but corn harvesting is very slow and so far only 19.5% of the area has been threshed. During the week, the number of crops in good or excellent condition increased from 37% to 41%, in satisfactory condition - decreased from 47% to 45%, in poor condition – decreased from 16% to 14%. Experts of the BAGE exchange left the forecast of corn production at 46 million tons, which is 5.5 million tons lower than in the previous season.  


< span style="font-size:14px;">dry and hot weather in central Brazil, which will last at least another week, reduces the amount of soil moisture on corn crops and supports prices. According to Agritel, in the state of Parana, the number of corn crops in good or excellent condition decreased from 40% to 28% in a week, compared with 61% a year ago and 74% on average. Therefore, Agritel experts lowered the forecast for the corn harvest in Brazil to 100 million tons, while in the April USDA report it was estimated at 109 million tons.

Visitors’ comments (0):