On the eve of the release of the USDA report, the price of maize increased by 4%
in Anticipation of the April USDA report yesterday in Chicago corn prices increased by 4% to the increase in ethanol production and expectations for lower ending stocks of corn in the world and the United States in the new balance.
Market supported the rumors about China's intention to purchase the next batch of U.S. corn and USDA data that export sales of US corn for the week amounted to 757 thousand tons, and in General in 2020/21 MG reached 66.5 million tonnes, which exceeds the export forecast for the current season. Exports of corn for the week made up 2.05 million tons, but only in the season made up 35.97 million tons projected by the USDA 66 million tons.
Yesterday on the stock exchange in Chicago, the may corn futures rose 4% to 228 $/t, and the December – only 1.8% to 194,5 $/t, which proves the speculative demand for the next contracts.
ethanol Production in the U.S. increased for the second consecutive week, and last week increased by 1% to 975 thousand barrels/day.
in Anticipation of the April USDA report independent analysts publish its assessment, according to which ending stocks of corn in the United States in comparison with the predictions March will decrease by 9% to 35 million tons, and in the world by 1.1% to 284,4 million tons.
Weather in Brazil contributes to the development of corn second crop, so the Agency Conab increased the forecast of corn production in the country this season by 8.3% to 109 million tonnes, up 6.2% over last year's figure.
Argentina continues to collect corn, and data on productivity confirm the predictions of production at 45 million tonnes, which will soon become bearish pressure on world prices.
In Ukraine due to low export demand the purchase price of corn will remain at the port level 245-248 $/t, however, the increase in maize prices in the United States in the case of a bullish USDA report can strengthen domestic demand for corn, which is still the most expensive on the market.
