Fundamental factors increasing pressure on corn prices

2021-03-23 12:03:06
Machine translation
Fundamental factors increasing pressure on corn prices

corn Prices remain under pressure fundamental factors and is a good statistic of sales and exports from the United States keeps them from further declines.


, traders are now confined to South America, where Argentina has started harvesting corn, and Brazil completes the corn second crop, which is mainly exported.


According to the Agency SAFRAS & Mercado, Brazil in 2020/21 MG increase compared to the previous season maize production by 5.6% to 112,81 million tonnes due to the expansion of sowing 6.2% to 20,752 million hectares, while the average yield may be reduced by 0.6% to 5,436 t/ha, while in January it had forecast at the level of 5,617 t/ha.


the Concern of experts on planting corn after the optimal timing is not justified, and corn second crop in Brazil already sown 86% of the planned area, which is only 10% less than the average rate.


In Argentina as of 17 March corn planted 5.9% of the planned areas, compared with 13.6% in the past year and 10.1% on average for this date. Precipitation last week has improved the condition of crops, but were detained for the collection, however, the crop forecasts remain unchanged.


According to the USDA, China on Friday acquired 800 thousand tons, and in just a week and 3.9 million tonnes of U.S. corn. Since the beginning of the 2020/21 season, the volume of purchases by China of corn from the United States reached 23.2 million t


the Export of corn from the U.S. for the week made up 1.96 million tons, but only in the season, has reached 32 million tonnes.


news about the increased sales of the may corn futures on the stock exchange in USA and throughout the week kept at 5.5 $/bushel or 216,5 $/t yesterday but fell slightly under the pressure of the news from South America.


Export demand for corn in Ukraine is very low, so traders are willing to pay for it no more 252-254 $/t or 7950-8050 UAH/t in port. The processors support prices at a high level 7700-7800 UAH/t with delivery to the plant.


the market presses the decline in wheat prices, which are now dropped below the price of corn.


corn Exports from Ukraine is very slow and now accounts for 15.4 million tons, which is 45% below last year's pace. At the beginning of April, the country remains unshipped a record amount of corn, as China has stepped up the purchase of corn in the US and the EU countries in South America.


Import maize in the EU this week made low season 132.8 thousand tons, and in General, the season reached 11.4 million tonnes, which is 27% below last year's pace. The main suppliers of maize is Ukraine (4.7 million tons), Brazil (4.4 million tonnes) and Serbia (1.2 million tonnes).

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