The slow pace of exports lower corn prices

Low export demand for U.S. corn remains the main factor of pressure on the stock price, which on Friday for the March contract fell to 148,4 $/t. at the same time prices for Ukrainian maize are rising thanks to strong exports, which reduces its competitiveness.

In comparison with the last year of the USA in October has reduced the export of corn by 60% and ethanol 34%.

For the week, export sales of corn fell by 32% to 545,1 thousand tonnes and exports by 22% to 494,8 thousand tons, which is significantly less than 900 thousand tons, you need to reach USDA's projected export level.

With the beginning of the season export sales of corn amounted to 14.6 million tonnes compared to 25.5 million tons on that date in 2018, the Main buyer is Mexico, which acquired 47% of the specified volume.

Expectations increase consumption of corn from manolovo industry did not materialize, as the time postponed until the end of December the decision on the extent of the use of ethanol in fuel in 2020.

According to estimates by USDA for ethanol production in 2019/20 MG in Krajny use 136.5 million MT of corn, which represents 40% of the total harvest.

Traders expect the December report, the USDA will reduce the forecast of the corn crop in the United States and Argentina and, as a result, the world stocks. However vakitim remains the issue of export of corn from the US, which once again can reduce the unsatisfactory rate for exports.

In the early season U.S. corn actively competed with the Brazilian, while now fighting with the Ukrainian.

Ukraine increases corn exports and over the last week sold 1.1 million tons of grains, and since the beginning of the season and 8.4 million tons, which is 32% higher than the corresponding figure 2018 Purchase prices for Ukrainian maize rose in port before 158-159 $/t FOB they went up to 169-170 $/t, while prices for Argentine corn dropped to 168 and 169 $/t, us – up to 170-175 $/t FOB US Gulf.