A sharp reduction in the production of ethanol did not lead to lower prices for corn in the U.S.

2021-02-25 12:05:17
Machine translation
A sharp reduction in the production of ethanol did not lead to lower prices for corn in the U.S.

Usually, stock prices respond faster to speculative factors than the fundamental, and another proof of this was the lack of market reaction corn on the data on the reduction in ethanol production in the U.S. for the week to 38%.

 

According to the report of the energy information Administration (EIA) for the week ethanol production in the United States decreased from 911 thousand barrels/day to the lowest since may 2020 (when was the peak of the lockdown) level 658 thousand barrels/day compared to 1.05 million barrels/day a year ago. While analysts expected that the production will decline by only 50-70 thousand barrels/day as a result of the cold stop some petrochemical plants last week.

 

within a week for the production of ethanol was used only 1.69 million tons of corn compared to 2.35 million tonnes in the previous week and 2.81 million tonnes in the corresponding period a year ago.

 

ethanol Stocks for the week decreased by 1.5 million tons to a very low level of 22.8 million tonnes.

 

Yesterday on the stock exchange in Chicago following the increase in oil prices at 3-3,3%. March corn futures rose 1.7% to 220,17 $/t, and the may – 0.8% to 219,28 $/t, blind to the reduction in demand from manolovo industry.

 

today, However, the data on the reduction of the consumption of corn for ethanol can stop speculative price increase because during the week any significant export sales of U.S. corn were recorded.


Euronext Paris, the March corn futures fell yesterday at 0.25 €/t to 229,25 €/t or 279,15 $/t, while the June futures rose 1.25 €/t to 221,25 €/t or 269,42 $/t

 

In Ukraine, the purchase price of corn since the beginning of the week rose in the port of 100-150 UAH/t to 8550-8600 UAH/t or 255-256 $/t, resulting in processors has increased the price of 50-100 UAH/t to 8200-8300 UAH/t with delivery to the plant, to increase the inventory during increased sales of manufacturers.

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