Corn prices were supported by rising oil prices and ethanol production

2021-11-25 12:05:03
Machine translation
Corn prices were supported by rising oil prices and ethanol production

An unexpected 2-3% increase in oil prices supported corn prices and kept them from falling, which analysts expected against the background of traders ' profit-taking on the eve of a long weekend.


December corn futures on the Chicago Stock Exchange fell only to 2 229.8/ton yesterday, as they were supported by an increase in ethanol production. The fall in wheat prices has not yet affected the corn market, but it expects Friday's report on export sales, which are likely to decline again compared to the previous week.


According to the EIA Association, ethanol production in the United States for the week increased by 19 thousand barrels/day to 1.079 million barrels/day, which increased domestic demand for corn. The volume of processing exceeds 1 million barrels/day for 7 consecutive weeks due to the high profitability of production caused by a 40-50% increase in the price of gasoline. Ethanol reserves increased by 83 thousand barrels to 20.164 million barrels, but gasoline reserves decreased by 603 thousand barrels to a 4-year low, and distillate reserves – by 1.97 million barrels to a 2-year low.


At the same time, oil reserves rose by 1.02 million barrels, although analysts had expected them to decline by 1.5 million barrels. Oil supplies to the main storage facility Cushing (the basis of WTI crude futures) increased by 787 thousand barrels, which will soon increase gasoline reserves. During Thanksgiving, the United States usually has the greatest demand for fuel, as most Americans go to their relatives for the celebration.


Crude oil production in the United States for the week increased by 0.9% to 11.5 million barrels/day, and the number of active oil rigs – by 7 units to a 19-month high of 461 units.


December Black Sea corn futures at the Chicago SWOT yesterday fell by 4 4.5/ton to.274.75/ton on forecasts of an increase in the harvest in Ukraine and a reduction in imports to the EU.


In Ukraine, purchase prices for corn in ports have increased since the beginning of the week to 2 270-272/ton, but in Hryvnia they fell to UAH 8200-8250/ton due to devaluation against the dollar. Problems with the delivery of grain to the port by rail have dramatically increased the number of offers, especially at Grain Elevators. The shortage of fuel and railcars in UZ paralyzes transportation, as a result of which many railcars have accumulated at the stations.


January corn futures on the Paris Stock Exchange rose another €1/ton yesterday to €259/ton or.290.4/ton, adding 6.4% for the month.