Corn prices expected by new factors
While traders are not decided on the final indicators in sowing areas of maize in the US, they are skeptical of the July evaluation USDA at the level of 91.7 million acres and hope for a significant adjustment in the August report. Forecasted for next week the heat in the corn belt of the United States can adversely affect the crops that are in the phase of pollination, and to strengthen plant stress, especially planted at a later date.
the Decline of oil prices and the lack of promised active trade with China put pressure on corn prices. December futures since the beginning of the week fell to the $9/ton to 172,98 $/t
Revenues from the new harvest pressure on prices for wheat and feed grains markets. South Korean refiners are actively purchasing feed wheat at 215-218 $/t CFR, which limits the increase in corn prices, which already exceeded 220 $/t CFR.
Thanks to the steady premiums for corn in Brazil, Argentina reasserted itself as the main supplier of corn to world markets, because here premiums have fallen through the resumption of shipments to major export centers and a bountiful harvest. However, a slower grain harvest in Argentina slows down the export that causes a rise in spot prices.
Brazil and Argentina are stepping up the exports of corn in the coming months it will be the world's major suppliers. An increase in supply of South American corn reduces the competitiveness of American grain and pressure on its price.
In Ukraine, the price of corn new crop remain at the level of 173-175 $/t for deliveries in November and December, despite improved weather conditions for crops. Price supports reduced the forecast of wheat production in the country and rising prices for feed wheat, which restricted the rise in price of corn.