Against the backdrop of reduced demand, corn prices fell to a 3-year low

December corn futures on the Chicago SWOT fell to $185.5/t, the lowest since December 2020, on Monday amid reduced demand and an acceleration in the harvesting of the new crop, and on Tuesday rose 1% to $187.5/t for supporting hot weather in Brazil, which may delay planting of first-crop corn.

According to the US MSG, as of September 17, corn was harvested in the country on 9% of the area (7% on average over 5 years). The number of crops in good or excellent condition for the week decreased by 1% to 51%.

Brazil's booming corn exports in recent months have dampened demand for the U.S. grain and could push inventories to near a 10-year high, while shrinking demand from China adds to traders' pessimism.

The export of corn from the USA grew to 642,000 tons during the week, and the total in 2023/24 MR already amounted to 1.26 million tons, which corresponds to last year's pace.

According to the State Customs of China, in August the country imported 1.2 million tons of corn, which is 33% less than in August 2022. In general, in the first 8 months of 2023, the import of corn to the PRC decreased compared to the same period in 2022 by 12% to 14 .9 million tons, while the import of wheat grew by 53% to 9.6 million tons, and barley - by 53% to 6.2 million tons.

In Ukraine, purchase prices are falling against the background of an almost complete stoppage of grain exports. Thus, prices for corn deliveries to the Danube ports fell to $155/t, to the port of Constanta – to $190-200/t, to the Ukraine-Hungary border – to $155-160/t.

Neighboring EU countries are strengthening the blocking of supplies from Ukraine, so farmers can only hope for increased exports through the humanitarian corridor through the Black Sea ports.

Much of Brazil has experienced intense heat this week, which could soon reach 40 ^degrees Celsius, hampering soybean and corn planting. According to the Climatempo forecast, high temperatures and a lack of precipitation will slow down planting, with the worst weather conditions expected in the states of Mato Grosso, Goiás and Mato Grosso do Sul, where the heat will reach 45-46 ^C during the days.