Rain and good corn crops in the US pressured prices
Powerful precipitation in the corn belt of the United States, which is the world's largest producer of corn, contribute to the formation of a good harvest. According to the report, NASS, corn seedlings obtained in 94% of the area and 77% of crops are in good or very good condition. Favorable conditions for plant development, the uncertainty of trade relations with Mexico, the introduction of import duties on U.S. corn and EU leads to a further drop in the price of U.S. corn.
Yesterday, the July corn futures in Chicago fell by 2% to 145,6 $/t by reducing the price of corn exports from the United States continues to grow, last week was sent to 1.41 million tons, or 32% more than last year.
the price Adjustment may occur after the publication of the report, USDA forecast corn crop in Brazil. According to forecasts of analytical companies, the production of corn in Brazil will fall by 2.5 million tonnes to 84.5 million tonnes because of the drought, which has damaged the corn crop safrinha.
the Demand for Ukrainian corn is practically absent because of the high cost compared to U.S. and Argentine grain, which practically flooded the markets of Europe and Asia. Corn exports from Ukraine over the past week fell to 208 thousand tons, compared to 508 thousand tons a week ago.
the Price of corn for delivery to the port is 177 to 178 $/t, which is almost equal to the price of corn new crop with delivery in October.