Corn prices fall due to low demand

2020-01-08 12:06:58
Machine translation
Corn prices fall due to low demand

amid increasing confrontation between the U.S. and Iran and the rapid rise in price of oil in March, corn futures for January 3, has increased to 154,1 $/t, but since January 6 fell to 150,87 $/t under pressure from low demand, a decrease in trading activity due to the long weekend and the reduction of speculative funds number of contracts before the publication of the January report USDA.


corn Exports from the U.S. last week fell to 550,9 thousand tons, which is 9.84% less than the corresponding indicator of the previous year and substantially less than 1 million tonnes to be exported each week to reach the projected USDA the level of 47 million tonnes, whereas until that season only sold 8.6 million tons of corn.


Weather in Brazil and Argentina contributes to the development of maize. In Brazil, precipitation is forecast for the following weeks, whereas in Argentina they passed last week, and now will be dry, but not hot. The prospects of a good harvest increase the number of proposals of South American corn.


Prices for delivery in March-April corn to South Korea and Vietnam have settled at 214-215 $/t CIF, and are unlikely to grow as Vietnam, which is the third largest country in global importer of maize, plans to cut its imports by 13% due to the reduction of consumption due to a decline in the number of pigs due to ASF. Last year through the disease the country has lost 20% of the population or 6 million pigs.


According to the USDA, in a season which began in may, Vietnam imports 10 million tons of corn, 1.5 million tons less than previously predicted.


India has postponed the tender for purchase of maize on January 14, but increased the procurement plan from 50 to 175 thousand tons, which will be an additional indicator of price.


In Ukraine after the long weekend traders expect price increases for corn of up to 178-180 $/t FOB, however, further growth will be limited by the prices on the black sea corn in the EU, which is offered at 180-181 $/t FOB.

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