A good harvest in South America and the epidemic coronavirus lower corn prices

a Decline in prices for corn in the U.S., the forecasts of good crops in South America and uncertainty over demand from China because of the epidemic coronavirus continue to put pressure on export prices on Ukrainian corn.

Since the beginning of the week, the exporters reduced the purchase price of corn in the port at 3-4 $/t to 166 to 168 $/t or 4750-4850 UAH/t, and can put them at 2-3 $/ton, if demand recovers in the coming weeks. In the ports there were large queues of the vehicles that the corn supply under previously signed expensive contracts, and some ports due to the lack of available tanks stopped receiving grain.

Processors also stepped up the purchase of corn, increasing competition with exporters and raised the prices to 4600-4650 UAH/t with delivery to the plant, which looks attractive compared to port costs due to logistics.

During the week the price of Brent crude fell 12% to 52,76 $/barrel, which reduces the margins of producers of ethanol and demand for corn.

the corn Futures in the U.S. dropped by 0.5% to 146,84 $/t under the pressure of cheap Argentine corn. However, the market supported the increase in ethanol production in the United States and the purchase of maize importers from South Korea, who this week purchased 500 thousand tons of grain, but in General, in February, to 1.4 million tonnes, which will be reflected in today's weekly report on export sales.

According to the weekly report of the EIA, the U.S. last week increased the ethanol production of 14 thousand barrels/day up to 1,054 million barrels/day, making the consumption of corn has increased to 2.8 million tons per week.

the corn Market is awaiting the decision of the Argentine government to increase duties on export of maize, which is currently stopped registration of all export contracts.