Exchange prices for corn fall under pressure from forecasts of increased production

2021-05-20 12:03:26
Machine translation
Exchange prices for corn fall under pressure from forecasts of increased production

< span style="font-size:14px;">yesterday on World exchanges, traders recorded profits and sold futures, especially for the cryptocurrency market, which lost 20-30% of its price in a day. Corn prices fell by 1-1.5% even despite powerful support factors in the form of increased ethanol production in the United States and sales of another batch of new crop corn to China.

 

< span style="font-size:14px;" > on the Chicago Stock Exchange yesterday, July corn futures first fell, and then recovered to the previous level of 2 259/ton, and December fell by 1% to. 212.2/ton. December contracts supported data on China's purchase of another 1.36 million tons of new crop corn, which has already been contracted for a total of 4.4 million tons in a week.

 

< span style="font-size:14px;">ethanol production in the United States for the week increased by 5.4% to 1.03 million barrels/day, and for the first time since March 2020 crossed the level of 1 million barrels/day. Ethanol reserves increased by only 40 thousand barrels to 19.4 million barrels and remain very low, as at the beginning of the holiday season, when the number of car trips increases.

 

< span style="font-size:14px;" > despite the promised precipitation in Brazil over the weekend, The Local Agency Agroconsult lowered its forecast for corn production of the second crop by 15% to 66.2 million tons and the total harvest to 91 million tons, compared with 102 million tons in the May forecast of the USDA. Lowering the export forecast from 35 million tons to 26 million tons will support grain prices of the old crop.

 

< span style="font-size:14px;" > in Argentina, despite the delay in harvesting, export sales of corn reached 27.9 million tons compared to last year's 24.4 million tons.

 

< span style="font-size:14px;" > the Taiwanese feed producers association this week purchased 65 thousand tons of Argentine corn for delivery in August at a price of 3 320/ton, which indicates the readiness of Asian buyers for this price level.

 

< span style="font-size:14px;" > Ukrainian corn offer prices remain the highest in the world and amount to F 295/ton FOB, but they are under pressure from lower prices for European corn.

 

on Paris Euronext, June corn futures fell by 4 €/T yesterday to 246.5 €/t or 3 300/T, and November futures fell by 4 €/T to 207 €/t or 2 252/t. < /p>

 

< p> < span style="font-size:14px;" > the European agency Coceral increased its forecast for corn production in the EU by 4% to 64.7 million tons, in particular in Romania – by 25% to 11.7 million tons and Bulgaria – by 16% to 3.4 million tons, which will increase competition for Ukrainian corn in the new season.

 

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