Corn prices on the stock exchanges and the physical market continues to decline

2020-02-04 12:10:18
Machine translation
Corn prices on the stock exchanges and the physical market continues to decline

the corn Futures yesterday showed a slight speculative correction after the previous fall. The sharp drop in oil prices by 7-10% increased the pressure on the corn market, but it was supported by a slight recovery of neighboring markets of soybeans and wheat.


Weekly maize exports decreased to 562,38 thousand tons,which is 3-week low. The main buyer of corn from the US was Mexico, then to China as the containers shipped only 1,54 thousand tons


the Chinese government hopes that the US will agree to some flexibility in respect of the obligations under the first part of the bargain, given Beijing attempts to contain the epidemic of the virus, which threatens to slow the economy and domestic consumption, so the increase in exports of agricultural products in China is not yet considered.


March corn futures yesterday fell by 1% to and 148.3 $/t, however InPrint deals recovered to 149,3 $/t. However, in the absence of new factors supporting quotes will resume in the fall.


On the physical market due to lower demand for U.S. kukutsu prices since the beginning of the week fell 1.5-2 $/t up to 175 $/MT FOB US Gulf. The market presses lower prices in Asian markets for 5-6 $/t over the week.


On Euronext March futures on corn for two weeks fell by 2.7% to 168 €/t or 185,77 $/t. Despite the reduced demand of the EU for a week imported 395,9 thousand tons and since the beginning of the season – 13 million tonnes, which is 7% inferior to the corresponding period last year.


the European Commission downgraded its forecast for corn imports in the EU in 2019/20 MG of 1 million tonnes to 20 million tonnes.


the price of corn in Ukraine and supports the demand by the EU, although they continue to fall behind world prices, as well as pressure of falling demand from China and Egypt.


Ukraine per week reduced the export of maize by 12% to 931 thousand tonnes, and since the beginning of the season sold 16,121 million tonnes, which is 3,705 million tons more than last year on this date.


the Purchase price of corn at the port yesterday dropped another 1-2 $/t to 171-172 $/t or 5000-5050 UAH/t


Domestic corn basis FOB offered at 184-186 $/t in March-April, while demand fell to 180-182 $/t, with increased sentences Argentine corn of the new harvest, which is offered for 175 $/t FOB with delivery in April.


the Seasonal increase in the supply of corn in Ukraine on the background of falling demand from China will increase competition with U.S. and Argentine corn, which will lead to a further reduction in prices for domestic grain.

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