On the eve of the November USDA report corn prices continued to fall

2019-11-07 12:24:21
Machine translation
On the eve of the November USDA report corn prices continued to fall

due To low export demand and uncertainty with the harvest of corn in the U.S. corn for two days has fallen in price on 2,2 $/ton to 148,89 $/t


News about a possible postponement of the signing of the trade agreement between the US and China from November to December was the main factor of pressure on prices.


the Market did not support even the weekly EIA report, which showed an increase in daily ethanol production up to 1,014 barrels, which confirms the growing demand for corn from manolovo industry.


in Anticipation of the publication of the report USDA analytical agencies publish their own estimates of production of corn.


compared with the October forecasts the average estimate of corn yield in the U.S. was reduced from 168,4 to 167.3 bushels/acre, the area to harvest – with 81,8 to 81.3 million acres, gross collection – from 350 to 345,5 million tons.


the reduction of the yield until worried traders, as the demand for U.S. corn remains low amid competition from cheaper South American and Ukrainian corn. It is expected that as a result of declining exports ending stocks of corn in the U.S. will increase.


Brazilian corn is becoming more attractive due to the depreciation of the real against the dollar.


South Korean refiners since the start of the week acquired 270 thousand tons of likely black sea corn for delivery in February-March at a price 207-212 $/t CFR that is pressing on the American market.


Prices for Ukrainian maize has stabilized at the port level 155-156 $/t or 4550-4600 UAH/t, because the terminals are overcrowded, and the lack of vessels on the background of continuing iron shipments from elevators logistics enhances the tension.


On the basis FOB the price of domestic corn stood at 166-167 $/ton for shipments in November and 169-170 $/t in December. Traders are closing short positions, however, demand for January-February is observed.

Visitors’ comments (0):