Buyers of corn are in no hurry to pay more
the Increase in maize prices in the cash market continues to reduce the number of buyers willing to pay more.
the corn Futures in Chicago with the beginning of the week declined by 1.8% and is trading at 147,4$/t, against the background of information about the lack of progress in trade negotiations with China. Hopes to intensify imports of American agricultural products in China were realized in purchasing about 2 million tons of soya two public corporations with 5 million tons which loudly said the President of trump at the end of the year.
the question Remains import volume of corn to China this season. According to the statement of the Ministry of agriculture of the PRC in the new year the state will end the sale of maize stocks from the state reserve, accumulated over the years as a result of policy support to corn producers, and return the stocks to "normal levels". In 2018 was sold more than 100 million tons, far more than planned, with total production of corn in China in 2018 at the level of 257,3 million . The Ministry did not disclose data on the ultimate residues of maize in China, but according to their forecast, the supply shortage of corn in the country in the 2018/19 season is 26.5 million.
Traders expect the revitalization of the import of U.S. corn from China at the background of low world prices and high input prices in China. The average wholesale price of maize in the main production areas in December amounted to 1880 yuan, or 277,90$/t, which is 11.9 percent more than in the same period last year.
the Decline in corn futures has stepped up the purchase of South Korean refiners, which bought about 260 thousand tons of U.S. corn for delivery in April and may.
ethanol Production from corn in the U.S. last week rose to its highest level since November, which significantly supported the futures.
the Active growth of prices of offers of Ukrainian corn from the beginning to the level 178-180 $/t FOB, a little cooled the buyers who recently bought at prices 168-170$/t FOB. Iran announced a tender to purchase 300 thousand tons of corn, but the sanctions may not allow Ukrainian corn to enter this tender. Buyers from Egypt and China is also looking for suggestions on the Ukrainian corn at a lower price, so soon will be clear whether the buyers pay more, or sellers have to reduce prices to enhance sales.