Despite the decline in demand, the price of maize growing in line with oil prices

Stock and commodity markets in the US are optimistic about economic recovery amid vaccination coronavirus and adoption of measures to support the economy.

Since the beginning of the week the price of Brent crude for the first time since March 4, 2020 has returned to pre-crisis levels and grew by 5% to 51.5 $/barrel, and WTI – to 48,24 $/barrel on data from the energy information Administration (EIA) on the reduction of oil production in the USA on 100 thousand barrels/day and the reduction of stocks during the week by 3.1 million barrels. Inventories of gasoline rose last week by 1.02 million barrels, and distillates – on 167 thousand barrels, while the market last week almost did not react to the increase in the oil reserves in the U.S. at 15.2 million barrels.

the Increase in oil prices and the shortage of rain in Argentina support corn prices which remain under pressure from lower export and domestic demand.

the

• the March corn futures on the stock exchange in Chicago since the beginning of the week rose by 1.9% to 168,5 $/t

According to yesterday's EIA report, ethanol production in the U.S. for the week decreased by 3.6% to 957 thousand barrels/day (although analysts expect growth to pre-crisis levels), and its reserves grew by 867 thousand barrels to 22.95 million barrels.

Reducing the travel of Americans on thanksgiving and the coming Christmas continues to lower demand for fuel, ethanol and therefore corn.

Export demand for U.S. wheat remains low. Purchases from China this week is not fixed, and the strengthening of quarantine measures after bird flu outbreak in Japan and South Korea, where destroyed 2 and 5 million birds, respectively, constrain purchases of maize in these countries.

On the stock exchange in Dalian corn futures for the week fell by 6% to the lowest since 30 September level amid the increase in imports of active sales of wheat from state reserves.

Ukraine has completed harvesting of maize crop which reached 29.7 mln tonnes, which will allow you to export 24 million tonnes in the current season. Amid falling export demand and strengthening of the hryvnia against the dollar by 1% since the beginning of the week the purchase prices at the port fell to 213-215 $/t or 8100-8250 UAH/t

corn Exports amounted to 7.2 million tonnes, 1.65 million tonnes inferior to last year's pace and while not accelerating.

Price offers of Ukrainian corn remain at 228-230 $/t FOB, American – 205-210 $/t FOB, while the bid prices for delivery to Asia is $250/MT C&F.

the European Union over the week reduced the import of corn by 29%, to 256 thousand tonnes, and since the beginning of the season, gained only 7.5 million tons of grain, which is 23% below the corresponding previous year.

Precipitation in Brazil improve the condition of the corn crops, but drought in Argentina support corn prices at a high level.

Brazil is currently exporting corn and in December to ship 4,474 million tonnes, of which 2,094 million have been exported Since the beginning of the season (1 February) the country exported 32,883 projected 35 million tons of corn.