Speculators lower prices for corn
Precipitation that passed in Argentina, had more psychological value than almost influenced the state of soybeans and corn that in the fall of 2017 are suffering from a drought that has covered almost 70% of the area.
Traders in Chicago bearish amid falling wheat prices and the news about the possible introduction of EU import duties on corn, although the US imports in the EU only 800 thousand tons per year. In addition, there is concern regarding the fate of grain exports due to attempts to renegotiate free trade with Canada and Mexico, which is a major importer of U.S. corn.
Yesterday in Chicago corn futures fell 1.3% to 148,2 $/t, whereas on the physical market prices remained unchanged.
According to the USDA, corn exports from the U.S. for the week rose 2.3% to 1,409 million tons, which is by 3.78% over the same period last year. American corn will have a stable demand, while the markets did not succeed corn of the new harvest from South America.
In Ukraine corn prices after a significant jump last week on Monday, continued its decline and fell in the port to 188-192 $/t. However, they are supported by high export demand, as on FOB basis for shipments in April-may the price is 205-206 $/t last week, Ukraine exported 570 million tonnes, but in General, in January-February – 4.11 million tons of corn. In case of preservation of the pace of exports until July Ukraine will be able to realize 20 million tons of corn that will meet the USDA forecast.