Exchange prices for corn rose after lower production forecasts in Brazil

Corn futures on the Chicago Stock Exchange are rapidly rising in price, and in three days rose in price by 8% against the background of an increasing shortage of supply and rising domestic prices in the United States.

Prices are supported by low corn sowing rates and cold weather in the United States, as well as yesterday's decline in the production forecast for Brazil due to dry conditions.

May corn futures on the Chicago SWOT yesterday rose another 3.1% to the highest level since 2012 - 2 246/ton, and December – by 1.5% to.211.8/ton.

From the weather in the United States, where snow and Frost were not too threatening, speculators turned their attention to Brazil, where corn crops of the second crop are experiencing a strong lack of precipitation.

Local agency IHS Markit lowered its forecast for the production of corn of the second crop in Brazil by 5.55 million tons to 79.45 million tons, and the estimate of the total harvest – by 4.6 million tons to 104 million tons.

According to the average estimate of 11 analytical agencies polled by Reuters, the corn harvest in Brazil in 2020/21 MG will reach a record 107.3 million tons, which, although 900 thousand tons lower than in February, will be 5% higher than last year's figure.

June corn futures on the MATIF exchange also rose by 3 €/ton to 229 €/ton or 2 275.8/ton yesterday, and November – by 3 €/ton to 203 €/ton or.244.5/ton, showing an increase of more than 3% since the beginning of the week.

In Ukraine, purchase prices for corn are growing following the world prices. Buyers raised prices in ports by 50-100 UAH/ton to 8150-8250 UAH/ton or 2 255-258/ton, but the number of offers decreased, as producers are ready to sell corn at a price not lower than 2 260/ton with delivery to the port.

At the same time, forward prices for new crop corn delivered to the port in November for the week increased sharply from 2 210-215/ton to.220-225/ton.

Prices of corn offers with the nearest delivery increased to 2 272-275/ton FOB, but the number of people willing to buy it is limited, since prices with delivery to the buyer do not exceed 2 285-295/ton C&F.

China'S MSG has issued directives recommending reducing the consumption of corn and soybean meal in pig and poultry feed, instead increasing the use of local raw materials such as rice, rice bran, sorghum, cassava flour or rice bran or barley. According to experts, in the near future, such a decision may change the structure and volume of corn and soybean imports to China.