Corn prices in Chicago rose 2.4% on the back of rising oil prices
Following the rapid rise in oil prices, corn stock prices continue to rise, even despite the intensification of harvesting in the Northern Hemisphere and a significant increase in supply.
The rise in oil prices to 3-5 annual highs and forecasts of further price growth to 9 90 /barrel support the prices of corn, a large amount of which is used in the production of biofuels. At the same time, markets ignore the rapid maturation and active harvesting of corn in the United States and low export demand.
According to the USDA's weekly NASS report, as of September 26, 74% of corn crops are in the maturity phase, up from 64% on average over 5 years. 18% of the area has already been threshed, compared to 15% on average. 59% of the crops remain in good and excellent condition. Dry and warm weather forecast for the next 7-10 days will speed up harvesting and increase supply.
Corn exports from the United States for the week increased by 28% to 517.5 thousand tons, but are inferior to last year's 827 thousand tons. since the beginning of the season, 1.139 million tons have been exported, which is 60% lower than last year's pace.
December corn futures on the Chicago SWOT rose 2.4% to 2 212.6/ton yesterday, down 1.8% from last month's level.
In Brazil, increased precipitation accelerates corn sowing, but there is still a lack of moisture in the central regions, so traders are closely monitoring the weather in South America.
On precipitation forecasts in Europe, November corn futures in Paris rose by €1.5/ton yesterday to the highest level since May 7, 2021 - €225/ton or.262.9/ton.
October Black Sea corn futures on the Chicago SWOT also rose by вчора 2/ton to.265.75/ton yesterday, which is 2.2% higher than the previous month's level.
Dry and warm weather, which will be established in Ukraine and Russia, will help accelerate corn harvesting. The first data indicate a high yield and confirm the forecasts of a good harvest.
Purchase prices for corn in Ukraine increased to 2 248-250/ton or UAH 7400-7500/ton against the background of a delay in harvesting, but traders are in no hurry to raise prices, as they have significant purchased volumes.
