Reducing demand lowers corn prices

Optimum time of sowing of corn in the United States ended on 5 June. The cost of crop insurance made after that date, each day increasing by 1%, making it inappropriate for further planting corn that farmers give preference to soy.

the Increase in corn prices in recent times has prompted farmers to take risks, however, notice of the intention of China to eliminate duties on soybeans will raise the price of oil and will force farmers to increase the area under it, had not yet reached the optimum time.

Experts IEG Vantage (Informa) decreased the estimate of acreage under corn in the current season to 84,94 million acres, but the yield is expected at a high level 174 bushels/acre or 10.9 t/ha, which will allow to 345 million tonnes of the crop in comparison with last year to 366 million tons, gathered from 89 million acres.

In the East of the corn belt continues to rain, which does not allow to accelerate North. In the garb of Illinois, Michigan, Indiana and Ohio as of 3 June corn planted only 31-45% of the planned areas.

Yesterday in Chicago July corn futures fell to 163,8 $/ton, and December – up to 170.8 $/t after another of trump's statements on the necessity of introducing a 10% duty on Mexican goods already in June, if the negotiations currently under way between the governments, will not address the issue of illegal migration. A record number of detainees in may of migrants caused a sharp reaction to trump the inaction of Mexico in this matter. Limitations of corn exports to Mexico, which is its major buyer, it will affect the market.

On the physical markets, corn prices fall under pressure from low demand. However, amid a sharp rise in stock prices of Taiwanese refiners have purchased several batches of corn with delivery in November at a price 210-212 $/t CIF.

In Ukraine on the background of falling demand after traders programs purchase corn prices at the port fell to 165-166 $/t, while the hryvnia rose to 5300-5350 UAH/t due to the increase in the exchange rate.

the Shortage of supply has forced the processors to raise the purchase price to 4900-5050 UAH/t with delivery to the plant.

corn For new crop delivery port in November-December are now offering 168-169 $/t