Strong demand supported corn prices in Ukraine

2019-12-24 12:11:47
Machine translation
Strong demand supported corn prices in Ukraine

March corn futures in Chicago during the week remained almost unchanged at 152,75 $/t with the support of the increased competition between American and Ukrainian corn in the background of strong exports of corn from Brazil.

 

For the week, corn exports from the U.S. decreased by 44.6% to 387,188 thousand tons and since the beginning of the season, he totaled 7,627 million tonnes in comparison from 17.02 million tonnes at the same date last year. Traders understand that to boost exports in the second half of the season will be possible only under condition of reduction of prices, especially after the market entry of grain from South America.

 

Additional factor of pressure on prices are the results of tenders by South Korean refiners.

 

South Korean optional origin has announced a tender for the procurement of two batches of corn with delivery in April, which had planned to purchase at the price 210 $/MT CIF, whereas the lowest price was 212 $/t CIF.

 

But optional origin refused the purchase after the news about the purchase of a competitor company MFG shipments of Ukrainian corn to Cargill for delivery in April at a price 209,7 $/t CIF.

 

In Argentina, corn planted 62,8% of the planned areas, which is 8.6% higher than the corresponding period last year. But because of the drought in some regions, experts of the Grain exchange of Buenos Aires has lowered the forecast corn crop in 2020 from 48.3 to 46.6 million tonnes compared to the December forecast USDA 50 million tons.

 

Brazil the week slightly reduced export of maize from 0.6 to 0.5 mln t, and in General in December, has sold 3.2 million tons.

 

Ukraine is also actively exporting corn. Traders believe that in December will be sold 4.5 million tons, as of 20 December there were exported about 3.1 million Since the beginning of the season, the country has shipped 10.6 million tons of maize, which is 36% higher than in the same period last year. On the eve of the long weekend, when the buyers ' activity is traditionally reduced, traders are busy buying corn, with the result that the demand price at the port increased by 2-3 $/t to 162-163 $/t for the December and 164-165 $/ton for January deliveries. But the ruble prices remain at the level of 4480-4550 UAH/t through a gradual strengthening of the hryvnia.

 

in addition, China and Iran Ukrainian corn is actively imports the European Union. According to the European Commission, the week, the EU imported 371,4 thousand tons of corn, and since the beginning of the season is 10.2 million tons, which is 1.6% higher than the corresponding figure 2018, the Share of Ukraine in the European imports rose to 43.7%, while the share of Brazil decreased to 45.8%.

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