Corn prices continue to fall
Favorable precipitation in the "corn belt" of the US and intense trade relations with buyers pushing the market for U.S. corn.
the Response to the introduction of trump duty on steel and aluminium was the introduction by the EU of the 25% import duty on U.S. corn and lift China duties on us ethanol from 45% to 70% after a previously imposed 25% duty on U.S. soybeans, sorghum, and wheat.
the Share of ethanol from the USA in the total imports of ethanol in China is 85.8 per cent, so the increase of the fee can virtually stop the export of American ethanol, the production of which is now growing and for the last week amounted to 1,064 million barrels/day, which will enable us to reach predictable USDA processing volume of 141.6 million MT of corn per year, or 38% of the total production.
the July futures on corn, which from the beginning of the week dropped to 135 $/t, yesterday rebounded to $140/t. Promised for next week precipitation is due to the improvement of crops and increased crop forecast pressured prices of deliveries in December and March 2019.
the Decline in corn prices contributes to the increased demand. On Tuesday, the South Korean processors bought another 140 thousand tons of U.S. corn at a price of 208$/t CFR. Along with the purchased last week, more than 1 million tons of corn the total amount of purchased grain in June reached 1.5 million tons.
due to low prices for the Ukrainian corn of the old crop fell 173-175 $/t CPT port for July deliveries and followed global markets prices for corn of the new harvest dropped to 165-167 $/t for October delivery.