Corn prices in the US are falling in Europe are rising

2021-03-02 12:10:16
Machine translation
Corn prices in the US are falling in Europe are rising

on Friday, prices for soybeans, wheat and corn on the Chicago CBOT came under pressure from low export sales and falling stock markets. However, after the adoption by Congress of the aid package worth 1.9 trillion $, on Monday, stock indexes rose sharply and played the previous fall, although this is not supported commodity markets.


oil Prices continue to fall. 25 February futures for WTI crude oil fell by 6% to 59.8 $/barrel, while may futures on Brent crude by 5% to 62.8 $/barrel. The market awaits the outcome of the Ministerial meeting of OPEC+, which will be held on March 4, and today's meeting of the technical Committee of OPEC+, which will be developed recommendations to increase oil production from April 2021г.


the Decline in oil prices weighed on the prices of corn, and fell against the low volume consumption for ethanol. In January, the use of corn for ethanol in the U.S. has declined in December by 3.7% to 10.56 million tonnes, which is 11.4% figure Jan 2020


the May corn futures on the stock exchange in Chicago from Friday fell by 4% to 209.5 $/t, and the December – to 194,25 $/t, despite optimism about economic recovery on the background of active vaccination in the country.


Export sales of US corn for the week fell by 50% to 453 thousand tons, which upset traders. However, the actual shipments for the week have increased by 22% to 1.6 million tonnes, which is added optimism to sellers.


the US Market remains under pressure to a lack of demand from China, especially given the increase in the supply of corn from South America. Argentine corn is now offering for 230-235 $/t FOB, American – in 240-245 $/t FOB, and Ukrainian – 260-265 $/t FOB.


Rains in Brazil delayed sowing corn second crop, so some areas can sow after the optimum time, which will reduce the yield potential. According to the Agency Rural Ag, now sown 39% of the planned areas compared to 67% on average for 5 years.


In Ukraine there was a stalemate, as the price of corn exceeds 260 $/t, while demand from exporters fell from 255-257 $/t to 253-255 $/t in the port. On the background of reduction of VAT rate from 20% to 14% of exporters have reduced prices by 6% to 8000 UAH/t at the port, and processors to 7700-7850 UAH/t with delivery to the plant that is more interesting than delivery to the port.


After Friday's drop, the March corn futures at the Paris MATIF rose yesterday by 1,25 €/t to 227,5 €/t or 274,08 $/t and the June – 1 €/t to 221 €/t or of 266.2 $/t


According to the European Commission, corn imports in the EU for the week fell to the lowest in 2020/21 MG 139,4 thousand tons, but only in the season amounted to 10.6 million tonnes, which is 28% less than the corresponding previous year.

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