Importers gradually reduce the purchase price of corn
Spread coronavirus continues to reduce demand for products, which has already led to falling prices for pork in Vietnam and immediately lowered the purchase price of corn for delivery to Vietnam in February-March $4/MT to 218 $/t CFR whereas in the case of supply in July, they fell below $200/MT CFR in the background of the projected increase in corn harvest in Brazil.
March corn futures on Euronext rose 0.25 €/t to 168,5 €/t or 182,2 $/t. While August futures is trading at 176,75 €/t or 191,5 $/t Exchange in the United States was not working yesterday.
the EU for a week reduced the import of corn by 67 thousand tons to 132.5 thousand tons, while the start of the season, imports amounted to 13.6 million tons, which is 10% lower than the level of the previous season, but more than 25% of the average three-year indicator.
the Ukrainian corn Market was supported by news about China's purchase of almost 500 thousand tons of domestic feed corn price 212-215 $/t C&F for delivery in February-March, which has increased the demand of exporters. However, due to peretantsuet ports, which resulted in downtime of vehicles, the purchase prices at ports have fallen to 168-170 $/t or 4830-4900 UAH/t
the prices of the offers of Ukrainian corn with shipment in March rose by $1/t to 181-182 $/t FOB, although demand remains low and buyers are not willing to buy more.
In Brazil, truck drivers have announced 24-hour warning strike in the port of Santos vs fuel surcharge and revision of minimum rates of freight. The continuation of the strike could block the export of agricultural products, as it was 2 years ago. Corn prices in the domestic market continues to grow and has already reached a month high due to low domestic supply and export intensive. Further price increases will lead to an increase in sowing areas of maize of the second crop.
According to the published report unveiled Friday with the long-term agroprogress, USDA expects increased production of corn in the country in the next 10 years to 400 million tonnes, while the acreage will rise from 89.7 million acres in 2019 to 94.5 million acres in 2020
Thai Authorities are planning to reduce from 7 to 5 months, during which allowed the import of corn with zero duty to improve the monitoring of local stocks of corn and raise the price to be acceptable to domestic producers level. Domestic corn stocks are rising due to smuggling from neighboring countries, and authorities are concerned that excess will be detrimental to local manufacturers.
