Corn prices on world stock exchanges continue to rise

Yesterday, commodity and stock world markets resumed an active increase in prices, including for oil, which, against the background of a rise in the price of wheat, gave corn prices an impetus to increase.

According to Bank of America analysts, by the summer of 2022, the price of Brent crude oil will reach 1 120/barrel amid the global energy crisis caused by rising prices for coal and gas, and high demand for gasoline and diesel fuel.

Yesterday, January Brent crude futures on the ICE Futures Europe exchange rose 1.1% to 8 84.8/barrel in anticipation of a meeting of OPEC+ member countries scheduled for November 4, where they may not agree on an increase in production beyond the previously agreed 400 thousand barrels/day, as the spread of covid-19 restrains demand.

December corn futures on the Chicago Stock Exchange rose 1.8% to 2 227.9/ton yesterday, adding 7.2% for the month. The main driver of growth remains the increased demand for ethanol.

According to the US Department of Agriculture, 10.3 million tons of corn were processed for ethanol in September, which was the highest figure in September since 2018, but another 1.6% lower than in August 2021.

Corn exports from the United States for the week amounted to 619 thousand tons, and in general in the season as of October 28 reached 5.422 million tons, which is 21% or 1.5 million tons lower than last year's pace.    

According to NASS Crop Progress, as of October 31, corn in the United States is harvested on 74% of the area, up from 81% last year and 66% on average over 5 years as of that date.

In Ukraine, purchase prices for corn against the background of a shortage of supplies and logistics problems in ports increased to 7900-8100 UAH/ton or 264-268 $/ton. the cost of transportation by road and rail from domestic grain elevators to ports increased by 30-50% to 1100-1500 UAH/ton, which almost stopped the supply of cargo to the port.

As of October 28, 15.6 million tons of corn with a yield of 6.44 t/ha were threshed in Ukraine from 2.4 million hectares or 44% of the area.

Manufacturers have stopped sales in anticipation of an increase in the supply of vehicles that now carry grain from fields to elevators, and later will transport it to ports, which will slightly reduce the cost of delivery.