The forecast for the Brazilian harvest pressure on corn prices
Cool weather and rainfall improve conditions for the development of corn and soybeans in the United States. Now is the pollination and grain filling, so moderate temperature and moisture is very important during this period to generate a good harvest. Precipitation fell unevenly, so the market continued speculative leaps. About it is already clear that the drought that caused the rapid rise in prices retreated and the quotes will remain at the level of 145-155 $/t
ethanol Production in the U.S. last week fell by 10,000 barrels per day to 1,002 million barrels per day (119 kt/q).
Export sales from the new harvest is far below the average for large volumes of supplies from South America, which continues to increase sales of winter corn crop safrinha.
Analysts INTL FCStone raised its forecast of corn production safrinha in Brazil by 1 million tonnes to 67 million tonnes, which is an absolute record for the country.
reportedly, increase the adjustment was made by increasing the valuation of acreage, which in the key centre for the production of corn - the state of Mato gross, had a great initial expectations via best prices of grain during the planting season. Taking into account the possible growth of gross harvest of corn safrinha total Brazilian corn harvest in the current season may reach a maximum for the entire history of the indicator - 98,68 million tons.
the Decline in world corn prices affected forward prices of maize in Ukraine, which dropped from 155 to 158 $/tonne to 147-150 $/t for deliveries to the port in October. But the hot weather which now prevails in the country negatively affects the corn crops, so do not expect a record grain harvest. Besides, the demand for Ukrainian corn will be high due to the increase of the forecast of grain imports by the EU countries, where drought will be a substantial reduction in production.