Optimistic statements trump has supported corn prices

Yesterday, US stocks and oil prices continued to rise, supported by upbeat statements trump about "the light at the end of the tunnel", which is already visible in the fight against Covid -19. This has supported corn prices, which remained under heavy pressure to reduce production of ethanol from corn by 25% over the week after falling 19% from the previous week.

against the background of statements of the authorities that within 4-8 weeks, the U.S. will be back to normal indexes Dow Jones, S&P 500 and Nasdaq rise in price the third day in a row yesterday added 2,6-3,4%. Along with them has increased the shares of some aircraft and even cruise companies which recently predicted bankruptcy.

Wuhan City in China after rigid quarantine has opened only 11 weeks, whereas the geographical spread of the virus in the U.S. is much higher than the size of one region of China.

the price of Brent crude on London exchange ICE rose to 33,67 $/barrel and WTI crude oil – up to 26,27 $/bbl amid expectations of the market regarding the new global agreement to reduce production, which can be reached at siogodni meeting of OPEC+.

the May corn futures in Chicago fell yesterday by 0.6% to of 132.4 $/t as the market expects further reductions in ethanol production and an increase in carryover stocks of corn in the April WASDE report.

Report EIA recorded the second record slump in ethanol production in the United States immediately to 672 thousand barrels per day (that is minus 168 thousand barrels per day for prevoius week, or 330 thousand barrels per day for average  during the year), which was the lowest production level in history Yanovo industry. The inventory level of ethanol rose to a record 27 million barrels. The volume of processing of corn for ethanol over the week decreased by 0.56 million tonnes to 1.7 million tonnes, while last year it averaged 2.8 million tons for the week.

Today will be released the April balance USDA. Traders occult that for the U.S. the forecasts of exports and domestic consumption of corn in ordinary times will reduce, resulting in carry-over stocks will increase, which will increase pressure on corn prices.

According to the median estimate of analysts conducted by The Wall Street Journal the survey, carry-over stocks of corn in the U.S. at the end of the season will increase in comparison with forecasts in March to 50.5 million tonnes, though will be lower than 56.9 million tonnes of the 2018/19 season of Mr.