Higher prices for coarse grains will increase in acreage
Significant rise in prices for coarse grains to the level of prices of wheat, although the global balanced balances of feed grains has surprised market participants.
However, the forecasts of reduction of the corn crop in Argentina and a reduction in global barley production led to a rise in barley prices over the price of wheat, and the cost of corn higher prices of feed wheat.
this increase in prices will promote expansion in 2018 the acreage of spring barley and corn. According to the Agency Abares, Australia will increase the crops of barley, canola and oats to the maximum of 6 years due to the reduction of wheat crops.
Ukraine barley prices at the port rose to 178-183 $/t, for corn to 178-181 $/t vs 177 $/t for feed wheat and 183 $/t for milling wheat. The abolition of the 10% import duty on maize in the EU will contribute to further price growth.
it is Expected that the acreage under maize in Ukraine will increase due to reduction of soybean crops, which from 1 September canceled the VAT refund, which will reduce its export appeal.
American corn is cheaper from-for falling of demand. During the week, export sales declined by 28% to 948 thousand tons, which is 35% lower than in the corresponding week last year.
Since the beginning of the season the exports of corn from the United States decreased to 18.9 million tonnes, down from 27.3 million tonnes in the corresponding period last year.