Corn prices are falling after a furious leap on the eve
In Ukraine, the continuing decline in maize prices, which rose last week in the port to 195 $/ton, and now set the record for the fall.
Prices with delivery to the port dropped to 180-185 $/t or 5500-5650 UAH/t due to excess supply of maize from producers at a price that exceeds the price of milling wheat 2 class.
the bid Price on FOB basis for shipments in April-may dropped to 198-200 $/t, which is par for 185 $/t FOB Argentina, 206,5 $/t FOB Brazil and 180-182 $/MT FOB USA.
little precipitation in Argentina will not improve the corn crop. According to the forecast Rabobank, the gross harvest of corn will be only 33 million tonnes, which corresponds to the estimates of other experts.
the corn Futures in Chicago remain at 148 $/t. the Main issue for American traders remains to estimate the acreage of soybeans and corn in the United States, which can change due to the restriction of imports of soybeans by China with the United States.
the Increase in soybean prices gave impetus to increase the area under oilseeds up to 91 million acres and the reduction of areas under maize to 89-89. 5 million acres. However, the situation may significantly change, and the area under maize can be more than 90 million acres (as predicted by the USDA).
the Growth of prices for Ukrainian corn will increase acreage in Ukraine. The profitability of growing corn was high and the level of prices in the port 150-155 $/t, while the forward price in the range of $170/ton, producers will increase the area of grain crops at the expense of soybeans, the price of which in the new season can significantly drop due to the cancellation of VAT reimbursement during export that will stop the export of soybeans from Ukraine and the decline in domestic input prices.