New purchases of China and increasing production of ethanol support corn prices in the United States

corn Prices recently fell under the pressure of falling world oil markets, soy and wheat. But this week, they were supported by significant new purchases of U.S. corn to China and the increase in ethanol production.

the China for the first time since January 29 resumed purchases of corn and added optimism traders. The Chinese company 16 Mar contracted to 1.16 million tons of corn, and March 17 is still 1,224 million Since the beginning of the season, China has contracted a record 21 million tons of U.S. corn, but shipped only of 7.41 million tonnes Chinese refiners are suffering from delays in delivery because the domestic price of maize in the country is much higher.

in General, the United States has contracted to export 60 million tons of corn and shipped more than 30 million tons projected for 2020/21 MG 66 million tons.

According to the U.S. energy information (EIA) for the week prior to March 12, ethanol production increased by 3.5% to 971 thousand barrels/day, while consumption of maize expert exceeded expectations and reached 2.5 million tons In the same time, ethanol stocks fell 730 thousand barrels to 21.3 million barrels.

the May corn futures on the stock exchange in the U.S. increased by 0.5% to 219,6 $/t, however, further gains were limited by a drop in oil prices by 1% and for wheat.

On the stock exchange in Dalian may corn futures remained at 418 $/t

Team Taiwan processors have purchased the tender 65 thousand MT of Argentine corn for delivery in may – June at a price of 300 $/t CFR, although the rates of demand from Asian buyers were at 290 $/t CFR.

In Ukraine, the purchase price of corn this week remained at 252-253 $/t or 7950-8050 UAH/t in port, however, they may decline after a sharp drop in wheat prices by 15-20 $/t to 255-260 $/t

due To low export demand processors are actively buying corn 7700-7800 UAH/t with delivery to the plant, which corresponds to 257-260 $/t in the port.

According to the state border service, as of March 17, Ukraine exported in 2020/21 MG 15,072 million tons of corn, which is 6,527 million tons inferior to the corresponding period last year.