Corn prices fell by 6% on precipitation forecasts and data on good sowing rates

2021-05-26 12:05:35
Machine translation
Corn prices fell by 6% on precipitation forecasts and data on good sowing rates

< span style="font-size:14px;">yesterday, on data on high rates of corn sowing in the United States and precipitation forecasts, corn futures on the Chicago Stock Exchange fell by 6%. The market is also under pressure from falling wheat prices, which are increasingly being replaced by corn due to the lower price, as well as China's new plans to stabilize raw material prices.

 

< span style="font-size:14px;">in Brazil, the state of Paraná will rain, while in Mato Grosso the drought is increasing, as a result of which corn crop forecasts continue to decline. Although traders believe that the drop in production in Brazil will be offset by its growth in the United States and Ukraine.

 

< span style="font-size:14px;">on the Chicago Stock Exchange, July corn futures fell 6.3% to.244.1/ton, and December - 5% to. 203/ton, losing 6.1% of the price in two days.

 

< span style="font-size:14px;" > the impetus for the decline in prices was the statement of the National Development and Reform Commission of China on its intentions to strengthen control over commodity prices within the 5-year plan. To stabilize the domestic market and food prices, it is planned to increase grain supplies through interventions. Traders fear that China will increase corn supplies from its own reserves and reduce its imports in my 2021/22.

 

< span style="font-size:14px;">falling wheat prices on global stock exchanges are increasing pressure on the corn market. Against the background of high stocks of wheat of the old crop and forecasts of the new crop, Asian buyers are increasingly buying Black Sea feed wheat instead of corn for delivery in July-August, when the volume of corn exports from Brazil will decrease due to a poor harvest.

 

< span style="font-size:14px;" > in Ukraine, purchase prices for old and new crop wheat in ports decreased to 2 233-235/ton, while corn prices remain at 2 270-275/ton for deliveries in May – June and.240/ton for deliveries in November.

 

< span style="font-size:14px;" > after yesterday's collapse of exchange futures, today Ukrainian buyers will significantly adjust prices, which will increase sales from producers who will try to sell grain at a high price.

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