The stock price of corn has increased dramatically, updating 7-year high

In anticipation of the release of the new balance yesterday USDA corn prices on the stock exchange in Chicago grew by 4% to the highest since June 2013 level - 223,3 $/t. the Reason was the increase in oil prices to nearly annual maximum. So, the price of Brent crude oil exceeded 61 $/bbl decline in the sentences the main exporters and expectations of new measures to stimulate the US economy, which will revive demand.

Suggested President Biden's package of measures to support the economy in the amount of 1.9 trillion $ has led to a speculative growth in the value of all assets, including to a record rise in price bdon exchange rate is during the week increased by 38% to 47 000 $.

Strong volatility of corn prices makes it attractive to speculators, who this week increased by 64936 to 2.64 million the number of open exchange contracts for all accounting positions, which is the highest figure since the summer of 2019.

Traders expect in today's Wasde report will be reduced ending stocks and increased the forecast of corn exports for the United States, and is also reduced by 4.5 million tonnes to 279 million tons assessment of world ending stocks, which will lead to another spike in prices.

the Market was supported by data on the export of corn from the United States, who last week increased by 42% to 1,577 million tonnes, but overall, the season was 21.45 million tonnes, which is 85% higher than last year's pace.

in addition, the representative of the USDA in Brazil has lowered the forecast of the corn crop in the country by 2 million tonnes to 105 million tonnes, since the delay harvesting soybeans delay sowing corn second crop that will reduce planting acreage and yield.

the reduction in purchases by China, which for two weeks to celebrate the New year, will increase the pressure on prices in the physical markets, especially in the Ukrainian corn demand is reduced.

Purchase of corn prices in Ukraine last week, dropped in the port to 250 $/t or 8200-8300 UAH/t and expect the increased demand, which may occur after the rising prices for U.S. corn. Prices under pressure from the strengthening of the hryvnia in two days of 1% to of 27.65 UAH/$, as well as an increase in supply from Russia, where sellers are trying to March 15 (the date of introduction of fees) maximum to sell corn.