The new trade agreement between USA, Mexico and Canada supported the price of corn

2018-10-02 12:05:45
Machine translation
The new trade agreement between USA, Mexico and Canada supported the price of corn

the United States signed a new trade agreement with Canada and Mexico that will replace the previous North American free trade agreement (NAFTA). A new document consists of 34 sections and covers over 1 trillion USD of trade turnover between the three countries.
Under the agreement, the United States access to the canadian dairy market and allow Canada to increase exports of automobiles in the United States. To trade grains and oilseeds to Canada, this transaction will not affect, but it will give the market a signal that the government is looking for solutions to trade disputes.

 

the American soybean Association welcomed this step, and stated that he "will return stability to markets in North America." And expressed the hope that the next step will be the settlement of the disputes with China, which has blocked the import of U.S. soybeans since the beginning of trade war.


the corn Futures after signing the agreement yesterday in Chicago increased by 3% and is trading at 143,4 $/t, which offset the decline in rates on Friday caused by news of increased carryover of corn in the U.S. as of 1 September by 6.7% to 54.4 million tonnes.
Mexico is the largest importer of U.S. corn, so the signing of this agreement adds confidence to the corn market.


the US continues to increase its exports of corn during the past weeks realized 1,345 million tonnes, which is 57.5% more than at the same date a year ago.


In Ukraine is low demand for corn continues to put pressure on purchasing prices, which fell in port before 153-155 $/t or 5100-5250 UAH/t. Forecast a record corn harvest in Ukraine is confirmed by yield increase. Now with 20% obmolocheno areas gathered 5.3 million tonnes of grain with a yield of 5.73 t/ha.

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