The prospects of a good harvest in the US, the EU and Ukraine lowers corn prices

Yesterday futures on the stock exchange in the U.S. decreased by 2.2% to 126,45 $/MT for the September contracts and to 129,12 $/tonne for December due to the increase in production forecasts due to improved weather conditions. The market is not even supported by the recovery in oil prices and increased ethanol production.

the experts of the IGC in the June forecast increased the estimate of global corn production in 2020/21 MG for 3 million tonnes to 1,172 billion T.

Traders expect the USDA report data on transitional reserves and areas of planting corn, which will be released September 30, will define the further price dynamics. Analysts expect that in comparison with the previous year corn stocks in the US will decline by 4.7% and the sowing area will amount of 95.2 million acres, while the USDA in June had been estimated at 97 million acres.

Export sales of US corn for the week rose by 29% to 461,5 million tonnes, although analysts had expected a better performance. Actual weekly export made up 1.31 million tonnes, but only in the season – 32.4 million tons.

ethanol Production in the US is gradually recovering and the week grew by 6.2% to 893 thousand barrels/day, corresponding to weekly consumption of 2.3 million tons of corn.

the Market has supported the news about the purchase of South Korean refiner 60 thousand tons of corn for October delivery at a price 189,97 $/t, which is much higher than the price of the previous purchase of APR.

Argentina is completing the harvesting of corn, which is collected on 78% of the area. The average yield is 8.4 t/ha, so experts Buenos-Iresco exchange left the production forecast at 50 million tons.

the price of corn to Vietnam in August and September remain at a low level 177-180 $/t CFR pressure build proposals from Brazil and Argentina.