Weather in South America and South Africa supports corn prices

Despite low export demand for corn in the United States, speculators are actively buying corn futures in anticipation of rising prices due to dry weather in South Africa, Argentina and southern Brazil.

Almost 80% of the regions of Brazil where corn of the first crop is grown are experiencing a lack of precipitation, so experts lowered forecasts for its production from 29 to 24 million tons. at the same time, in the central regions, where soybeans and corn of the second crop are sown, favorable weather with heavy rains remains. Against the background of the lowest corn stocks since 2012, due to a reduction in the production of corn of the second crop, prices in the domestic market of the country increased to 2 295-300/ton.  

Dry weather in South Africa also supports quotes.

Following oil prices, March corn futures on the Chicago Stock Exchange on Monday rose 1.3% to 2 241.7/ton, but yesterday fell 2.3% to.237.4/ton, which is 3.8% higher than the previous month.

In Ukraine, purchase prices for corn, following the world ones, also increased in ports to 2 260-262/ton or UAH 8100-8150/ton, but as the New Year holidays approach, the volume of deliveries decreases. Traders expect increased sales in the new year, so they do not raise prices, even despite delays in loading ships against the background of bad weather.

As of December 24, Ukraine exported 9.6 million tons of corn, which is 1 million tons higher than last year's export rate. However, at the current rate of shipments, it will not be possible to export another 20-22 million tons of corn over the next 3-4 months.

March Black Sea corn futures remain at a high level of 2 276/ton due to rising prices in the United States.

March futures for European corn on Paris Euronext after falling on Monday yesterday rose by 1.5 €/ton to 241 €/ton or 272.4 € /ton, which corresponds to the level of the previous month, but remain under pressure from low demand.

In the next two weeks, exchange prices for corn will mainly be affected by the weather in South America.