Adjustments in oil prices supported soybeans and corn

2020-04-23 12:04:10
Machine translation
Adjustments in oil prices supported soybeans and corn

Yesterday the US stock exchange rebounded slightly on data on government allocation of the next tranche of aid to business in the amount of $ 500 billion and plans to cancel the quarantine in 20 States.

 

oil Prices began to rise, and after trump statements on Iran have grown by 10%. The US President ordered the country's Navy to destroy all Iranian ships, which hinder the movement of us military in the sea, once received a message about the threatening maneuvers of the military courts of Iran in the Persian Gulf.

 

Thanks to a spike in oil prices, the quotations for soybeans grew by 2% and maize 3%.

 

Markets supported the rumors about China's purchase of 500 thousand tons of soybeans in the US and plans to buy more maize after trump said about the possible suspension of the first part of the bargain because of the failure of China's obligations.

 

There is information that China plans to buy 20 million tons of maize to replenish the state reserves, but officially it has not yet been confirmed.

 

Data on weekly ethanol production in the United States was better than expected. It only decreased by 7 thousand barrels/day up to 563 thousand barrels/day, which is 43% below the average indicator of the previous year. Ethanol stocks increased by 220 thousand barrels to 27.68 million barrels.

 

the corn Futures rose to 127,9 $/ton, while export prices dropped to 148-150 $/t FOB US Gulf.

 

the Acquisition of a South Korean feed manufacturer Major Feedmill Group (MFG) 138 thousand MT of South American corn for delivery in October-November at a price 177,5 $/t C&F pressure on prices.

 

Following the recovery in oil prices soybean futures rose to 313 $/t on data acquired by China a large shipment of soybeans. Today, the market will receive data on weekly export sales, which will take into account the purchase of China. However, further growth has limited the depreciation of the Brazilian real against the dollar to a record low, which sharply reduces the competitiveness of U.S. soybeans. Export prices for U.S. soybeans with delivery in June rose by 3 $/t to 333 $/t FOB US Gulf, and the Brazilian dropped to 335 $/MT FOB Brazil.

 

however, analysts believe that in may, oil prices may fall again to negative values, which will increase the turbulence in the commodity markets. According to Bloomberg, the storage of oil will be filled in late may or early June, as every week there fill 50 million barrels of crude oil, while buying it much less due to the pandemic Covid-19 and the crisis in the global economy.

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