Corn prices continue to rise on the exchanges and physical markets

at the End of last week the world's stock of corn prices continued to rise amid the containment of sales manufacturers, although it is sharp jump of the prices has led to reduced sales. Experts expect prices to reverse, after which farmers around the world dramatically stimulate sales.

Due to the dry weather the rate of harvest of corn is higher than last year. According to FranceAgriMer, France corn collected at 77% of the area compared to 42% last year and 66% on average for 5 years at that date.

According to the Reuters forecast, in comparison with last year the corn crop in France will increase by 6% to 13.5 million tonnes, in Germany will grow by 9% to 4 mln t, in Poland will remain at last year's level of 4.5 million tons, in Romania will decrease by 40% to 10 million tons.

the Completion of the collection in France and revised data on productivity have increased the pessimism of traders. The November corn futures on MATIF in two of the last session increased by another 5.75 €/t 196,5 up to €/ton, just a week gaining 5.5% in two weeks – 11%. Dollar price due to the strengthening of the Euro against 1,186 $/€ 233 rose to $/t

the December corn futures on the stock exchange in the United States for two sessions, rose by 1.3% to 164,5 $/t, however, some traders are already starting to take profits because a significant increase in open contracts confirms the speculative component of growth.

According to the CFTC, the number of long contracts for corn grew by the stock exchange to the highest since March 2018 level of 218,8 thousand and 118 thousand to 469 thousand contracts.

against the background of an overbought market, the intensification of sales producers due to higher prices will force traders to close contracts that will increase pressure on prices.

China Customs reported that China during January – September increased its imports of corn to the biggest in 15 years – 6.7 million tons, including in September - to a record high of 1.08 million tons.

it is Expected that China will purchase 12 million tons of corn in the U.S. and 4 million tons in Ukraine, which will increase the import quota, which is now set at 7 million tonnes.

Ukraine traders to fulfill previously signed contracts forced to raise the price of corn on the background of containment sales producers. Downtime of vessels in the ports due to the delay in collection and the reduction of the yield increased to 10-30 days, due to which traders suffer great losses. In two days the purchase price of corn in the ports grew by 5-10 $/t to 220-222 $/t or 7500-7600 UAH/t, up for the week of $20/t

For the week, corn exports grew by 63% to 390 thousand tons, and just season amounted to 1.4 million tonnes, which is 55% lower than in the previous year.

As of October 22, with 52% of the area harvested 13.1 million MT of corn with a yield of 4.7 t/ha, whereas last year on this date, with 58% of the area was collected 19.1 million tons with a yield of 6.6 t/ha. Analysts lowered the forecast corn crop in Ukraine to 27-29 million tons.