The drop in corn prices has stopped in anticipation of the USDA report
the September corn futures in Chicago were resumed to $142/ton after a sharp drop last week.
heavy rainfall in the corn belt of the United States improve the condition of crops, which puts pressure on prices. Now in good and excellent condition are 77% of crops compared with 67% on this date last year.
Active export and large volume processing for ethanol will reduce the bridging residues. Traders expect the USDA report with data on crop acreage and reserves.
Analysts estimate the acreage of corn in the United States in 88,562 million acres, at 1.65 million acres lower than the level last year, but on 536 thousand acres is higher than the data of the March report.
Promised for the next 7-10 days, dry and hot weather in the corn belt could affect corn crops which are in flowering stage, especially since precipitation have been quite uneven.
Despite traders ' expectations about the increase in quota corn processing for ethanol, the ERA retained the mandate for 2019 about mixing ethanol from corn at 15 billion gallons. This will be enough to provide a level for maize processing to ethanol in 2018/19 MY in the amount of 5.677 billion bushels (144 million tonnes), according to the USDA forecast.
In Ukraine, the price of corn new crop with delivery in the port in October dropped to 165-167 $/t due to precipitation and lower air temperature, which favorably affected the crops.
there is Almost no demand for corn old crop, private companies close contracts to ship the pariah prior to the early acceptance of new crop grain. For corn old crop with fast delivery in the port offer 173-175 $/t or 5300-5350 UAH/t. Just in 2017/18 my Ukraine has exported 17.6 million tons of corn.
Reducing sown areas and heat in Russia will reduce corn crop, which will reduce competition for Ukrainian corn from the Black Sea region in the new season. In 2017/18 MG Russia has increased export of maize compared to previous season by 13% to 5.6 million tons.
the Brazilian Agency Agroconsult lowered the forecast for the second corn crop from 57 to 55.2 million tonnes, while the forecast of export of grain left at the level of 28 million tonnes.
currently, the global market remains under heavy pressure by the major countries-producers.