The price of corn increases due to delays sowing in the USA and the lack of rainfall in Brazil

2018-05-02 12:17:03
The price of corn increases due to delays sowing in the USA and the lack of rainfall in Brazil

Monday and Tuesday at auction in Chicago July futures on corn grew by 2.5% and crossed the psychological bar of $4 per bushel and is currently trading 159,44 $/t

 

Analysts believe that due to the delayed planting of corn in the United States and a forecast of dry weather in Brazil in the next days Cina will continue to grow and this week.

 

corn Sowing in the U.S. for the week was accelerated by the warm weather, but generally sown only 17% of the area compared to 27% average over 5 years and 32% at the same date last year. Shoots were obtained on 3% of the area compared to 6% on average on that date. Precipitation is predicted for Wednesday and Thursday, may again detain the corn, so traders are concerned that farmers will be forced to reduce acreage under maize at the expense of soybean acreage.

 

In Brazil, where for filling of corn second crop is now in dire need of precipitation in next 8 days promise a high temperature and dry weather. After a drought in Argentina, which has reduced the harvest of corn and soybeans, the weather in Brazil and the forecast of the corn crop will significantly affect prices in the short term.

 

Supported corn prices, the USDA report on the growth of corn processing for ethanol amid rising oil prices.

 

On ethanol in April was revised to 12 million tons of corn, which is 9.1% more than in March and by 2.72% than in April of last year.

 

in the last week, the United States exported 1,465 million tons of corn, which is 15.7% lower than the level of last week, but by 29.55% higher than in the corresponding period last year.

 

Monday corn in Paris has risen by 2 €/t and is trading at is 165.5 €/t or 198,68 $/t for deliveries in June. Rates supports the decline of the Euro to the level of 1.2 €/$.

 

Weather in Ukraine and Russia were dry and warm, allowing manufacturers to increase the sowing rate, and a long weekend will be the driver of growth in grain prices as traders are stepping up the procurement of the export consignments of grain.