Corn prices in the US are growing as the recovery in ethanol production

2020-05-29 12:03:13
Machine translation
Corn prices in the US are growing as the recovery in ethanol production

yesterday Released data on the reduction in the number of unemployed and a recovery in ethanol production in the US led to higher prices in the U.S. market, 9% and maize 3%. However, before the end of trading, prices fell as traders began to fix profit.

 

a week for unemployment benefits appealed the 2.1 million Americans, which is significantly lower than in previous weeks. And from the beginning of the crisis asked for help 40.7 million Americans, or one in four working people. The increase in the number of workers stimulates the demand for automobile fuel, which is a factor supporting oil prices.

 

ethanol Production in the U.S. is recovering month in a row, and during the week increased by 9.2% to 724 thousand barrels/day (before the crisis amounted to 1 million barrels/day), corresponding to weekly consumption of maize at the level of 1.8 million tons of ethanol Stocks fell by 450 thousand barrels to 23.1 million barrels, which is at least 20 weeks.

 

the July corn futures yesterday rose 2.8% to 129,6 $/t due to the growing demand from manolovo industry.

 

Optimism traders added may balance for corn from IGC, in which the estimate for ending stocks was reduced despite the increase in forecast world production.

 

the experts of the IGC in the may report increased the estimate of corn production in 2020/21 MG to a record 1,169 billion tons, which is 4.8% over the previous season.

 

however, even despite the slowdown of the world economy development forecast of consumption of corn in 2020/21 MG increased compared with last year increased by 2.9% to 1,177 billion tons, causing corn stocks will shrink by 3% to 288 million tons.