Corn prices partially recouped the fall, but new pressure factors appeared

2021-09-23 12:08:43
Machine translation
Corn prices partially recouped the fall, but new pressure factors appeared

Yesterday, corn prices on the Chicago Stock Exchange partially recouped the fall on Monday and Tuesday due to rising oil prices, even despite data on a reduction in weekly ethanol production and rumors about a possible reduction in the share of biofuels in fuel in the United States.

 

According to the EIA Association, ethanol production for the week decreased by 11 thousand barrels/day to 926 thousand barrels/day and has remained at a fairly low level for 5 weeks. Ethanol reserves increased by 101 thousand barrels to 20.111 million barrels.

 

According to Reuters, the US presidential administration is proposing to significantly reduce the requirements for mixing biofuels in order to lower food prices and slow inflation. If the appropriate decision is made, automobile fuel producers and oil companies will receive additional profits, and a reduction in demand for ethanol will reduce the income of Corn Processors, which are most often used in the production of biofuels, and grain farmers.

 

After Reuters reported the news, rin loans used to verify compliance fell to кожний 0.92 each, down from.1.07 in the previous session.

 

The market reacted to the bearish news, as always, with growth, and December corn futures on the Chicago SWOT yesterday rose 1.6% to 2 206.9/ton, almost recouping the 1.9% drop at the beginning of the week caused by the collapse of stock and commodity markets.

 

Today's report on export sales from the United States may support corn prices, but low export demand due to a lack of purchases by China and a possible reduction in domestic demand from the ethanol industry against the background of a significant harvest in the current season may soon turn prices down again.

 

China imported 3.23 million tons of corn in August, which is 221.2% higher than in August 2020. in general, 21.4 million tons of grain were imported from January to August, which is 283.7% higher than last year's figure. If China maintains high import rates, the market will receive support in the current season and will not collapse under the pressure of increased supply.

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