Corn prices fall under pressure from demand reduction

This week the situation in the corn market will change, and increasing sentences will not be offset by increased demand as China reduces purchases of goods in the US and other importers expect the seasonal decline in grain prices following the collapse of the markets of oilseeds, which has already led to lower prices for the meal.

the focus of traders focused on the United States, where as of September 27, threshed 15% of the area of maize compared to 10% last year and 16% on average for 5 years. Projected for the next 7-10 days of dry and warm weather will accelerate the collection and increase the volume of offerings on the US market, and will also allow correct estimation of crop yield and gross harvesting in the current season.

the Number of crops in good or excellent condition remained at 61%, the same as a week ago, although a year ago the figure was 57%.

Weekly exports of corn from the United States amounted to 806,7 thousand tonnes, of which 274 thousand tons purchased China and another 300 thousand t – Mexico. Since the beginning of the season (1 September), the United States exported 2.78 million tonnes of maize, which is 79% higher than the pace last year.

on Wednesday made public a report on the balance of corn in the U.S. at the end of the 2019/20 season, which can reduce as a result of strong exports to China, which will affect the balance of corn in the U.S. in 2020/21 MG price.

the December corn futures on the stock exchange in the United States yesterday increased to 143,8 $/t, but the factors are almost absent.

Dry weather in South America before sowing soybeans and corn supported corn prices at a high level 190-200 $/t FOB, however, experts expect that in the near future La Nina will bring heavy rains, which will improve conditions for seeding.

the Agency Coceral lowered the forecast of maize production in the EU (including the UK) from 64.6 to 62.8 million tonnes because of low yields. However, this will not lead to an increase in imports as stocks of wheat and maize in the EU is quite significant, and the prices of the American and Ukrainian corn are higher than the European.

during the week, the EU imported 257 thousand tons of corn, and since the beginning of the season to 4 million tonnes, which is 18% below the corresponding indicator 2019

In France as of September 21, corn is collected on 155 areas compared to 2% last year, which increases the volume of offers.

Price offers of Ukrainian corn remain at 195-200 $/MT FOB for deliveries in October-November when the bid price reaches 190-192 $/t FOB. Due to increased sales of the purchase price of corn at the port dropped to 180-182 $/t or 6100-6200 UAH/t

As of 24 September in the Ukraine with 9% of the area harvested 2.2 million tons of corn with a yield of 4.5 t/ha.