Corn prices fall under pressure from falling energy market

2020-04-28 12:04:54
Machine translation
Corn prices fall under pressure from falling energy market

Yesterday's drop in the price of us oil by 56% and decreased demand for corn from manolovo and the meat industry continues to lower the price of corn. In addition to the market pressure the active sowing corn in the United States, where he established a dry and warm weather, and information about the fact that Ukraine does not intend to limit the export of corn.

 

According to the report, the crops, the pace of planting corn in the U.S. last week increased by 20%. As of April 26, planted 27% of the planned areas compared to 12% on this date last year and 20% on average for 5 years.

 

the Quotes could not support the increase of corn exports for the week by 54.5 per cent to 1.08 million tonnes From the beginning of the season, the United States exported 22.3 million tonnes of corn. Therefore, to reach the projected level of 43.8 million tonnes, needed weekly to export 1.2 million MT of corn, which is unlikely after the price drop in South American corn, caused by the devaluation of local currencies.

 

the May corn futures yesterday fell by 2.9% to 120,6 $/t in July to 123.4 $/t Since the beginning of year the price of corn in the United States lost to 21.6% due to lower domestic demand from manolovo and livestock industry.

 

Following the decline in the prices of Argentine corn to 140 $/MT FOB export price of U.S. corn dropped to 145 $/t FOB US Gulf.

 

After a decline in corn prices in Chicago to a level equivalent to the price 157 €/t in the EU, the EU automatically entered into force, the import duty on corn in the amount of 5.27 €/t. According to the European Commission, the import of maize into the EU grew during the week before 480,8 thousand tons and since the beginning of the season amounted to 17 million tonnes, which is 15% inferior to the corresponding period of the previous year but 17% higher than the average three-year rate at that date.

 

Such a move would reduce the export of Ukrainian maize in the EU, which will lead to a further decline in prices for domestic corn, which has dropped to 162 to 164 $/t FOB due to low demand.

 

the Purchase prices at the port fell to 161-164 $/t or 5170-5300 UAH/ton, which exceeds the level of prices on FOB basis as traders are trying to fulfill previously signed agreements, and the producers are holding back sales, hoping that the price drop will stop.

 

For the week, the Ukraine reduced the export of corn by 29% to 491 thousand tons and since the beginning of the season exported 25.5 million tons from USDA's predicted 32 million tonnes.

 

corn Sowing in Ukraine is more active than last year, and as of April 23, already planted 2.4 million hectares of the planned 5.4 million hectares. Recent rains and predicted at the beginning of precipitation may increase the likelihood of a good harvest after a long spring drought.

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