Demand for U.S. corn is increasing, Ukrainian – falls

the Increase in demand for us maize from East Asian countries supports the price of corn in the United States, while the decline in demand for Ukrainian corn continues to put pressure on purchase prices.

corn Exports from the U.S. last week rose by 14.33% to a record in 2018/19 Mr 1,353 million tonnes, which is 22% inferior to the corresponding period last year.

With the start of the season exported 33.2 million MT of corn, which is 3.5 million tonnes higher than in the same period 2017/18 MG.

the July corn futures yesterday fell 1.6% to 142,2 $/t despite the increase in oil prices and active buying corn speculators.

Last week on the background of delayed planting of corn in the U.S. speculative funds increased the number of short positions in corn contracts by 35.7 thousand to record 307,5 thousand. Today a report on the crops, however, traders are now planted 5-6% of the plan compared to 12% on average for 5 years at that date.

corn Exports from Ukraine in a week decreased from 804 to 392 thousand tons and since the beginning of the season exceeded 22.4 million T.

Due to lower export demand price demand at ports for the week decreased 162-163 with $/t to 158-159 $/t or 5000-5100 UAH/t. the Demand from the EU almost exhausted, and China is also not increases the purchases.

According to the forecast China Agricultural Outlook (2019-2028), in the coming years, China will increase corn imports through significant inventory reduction for several previous seasons. But contrary to expert expectations, the policy of quotas and import duties will remain unchanged, and deliveries will not increase. Will increase the consumption of corn for feed and deep processing. Selected WTO China's quota on imports of corn this year is 7.2 million tonnes, with Import duty within the quota is 1 percent, other supplies – 65%.

In 2018, China imported of 3.52 million tons of corn, in 2019 will increase imports to 3.6 million tons, in 2020 – up to 4 million tons.