Under the pressure of fundamental factors corn prices continue to fall

After a speculative leap ahead of the release of the USDA report, the price of maize on the stock exchange in Chicago on Monday fell by data on sowing a new crop and precipitation forecasts in Brazil.

the May corn futures on the Chicago CBOT after a speculative growth on Thursday at 4% yesterday fell 1.5% to 223,2 $/t, losing over two sessions almost 2.3%.

According to the weekly report of the USDA, volume prospective for corn exports for the week decreased by 38% to 1.58 million tons under the expert expectations in the range of 1.7-2 million tons.

the Rate planting corn, which is planted 4% of the planned area, which is 1% higher than the average 5-year average. The soil moisture reserves in many States lower than last year, but precipitation forecasts until negate the impact of this factor.

In Brazil in the regions of growing corn second crop at the end of the week will be heavy rainfall, which will improve the condition of crops and water supplies, as well as remove speculative pressure the weather in the country on the corn market.

the May corn futures on the Dalian exchange, decreased by 0.8% to 409,58 $/t

the Demand from Asian buyers remains low because the price of corn be 300-305 $/t C&F due to the high rates of freight and the prices of maize, while wheat offered at 275-285 $/t C&F.

In Ukraine, the discrepancy between the prices buyers and sellers also reaches 8-10 $/t Price proposals are 262-270 $/t FOB, while demand does not exceed 258-260 $/t FOB.

Purchase prices at the port of Friday rose to 250-253 $/t or 7950-8050 UAH/t, but manufacturers keep the market in anticipation of further price increases.

IN 2020/21 MG as of April 12, Ukraine has reduced corn exports compared to the same period of the previous season 29.1% or 7.13 million tonnes to 17.33 million tonnes Until the end of the season we need to export more of 5.67 million tonnes in accordance with the April forecast by the USDA or 6.67 million tonnes in accordance with an agreed Memorandum of exports.

In April – may market competition of corn will increase, as it will increase the supply of Argentine maize, prices have now dropped to 242-247 $/t FOB.