When to sell corn?
Decline in demand and prices for corn of the old crop has forced farmers to think about selling the new crop.
Last year in the same reporting period, the price of Ukrainian corn of new crop with delivery in the port was 165-170 $ per ton. A lot of people were expecting a similar scenario this year. But a rich harvest of corn 2016/17 year in the United States and South America continues to put pressure on prices. The June USDA report has slightly lowered the forecast gross yield of corn in the world in 2017/18 with 1,033 billion tons indicated in the may report, to 1,031 billion tons. The decline in maize production is expected in Canada - 14.4 (15,2) million tons , EU - 62 (63,5) million tons . in Ukraine, on the contrary is expected to increase production to 28.5 (28) million tons.
the End of the world stockpiles of corn in 2017/18 will decrease slightly: from 195,2 million tons to 194,3 million tons. High temperatures and lack of rain in the corn belt of the USA has caused some concerns for the next harvest , but reports show only a small deterioration of corn crops. The share of crops in good to excellent condition declined to 67% ( 68% in may and 75% in average for 5 years). Adverse weather conditions, the proximity of time of expiration of the July contracts, and reporting data USDA provoked a rapid rise in grain prices last week. In Chicago corn prices for July contracts during the week increased by 4% and amounted to 152 $ per ton. But yesterday, after profit-taking price declined to 149,3 $ per ton.
Prices for the Ukrainian corn of the old crop continues to remain at the level of 155 to 157 $ per ton with delivery to the port. The strengthening of the hryvnia to 26.1 UAH for a dollar reduces the purchase prices in the national currency to 4700-4750 UAH per ton. Forward prices for new crop corn over the past week has strengthened by $ 1-2 and traders are prepared to contract corn 150-152 $ / ton, with delivery in October.