Corn prices in Ukraine are at odds with the trends of the world market

2020-05-28 12:02:46
Machine translation
Corn prices in Ukraine are at odds with the trends of the world market

Due to the limited number of proposals in the background of the necessity of the execution of contracts traders purchase prices for maize in Ukraine is gradually increased and increased within the week by 50-100 UAH/t to 5450-5500 UAH/t or 170-172 $/t at the port for may deliveries, while for June they do not exceed 166-167 $/t CPT, which corresponds to 176 $/MT FOB. After performing the may contract traders already in June will lower the price to market.


the world market Prices remain low because it is dominated by mostly bearish factors. The increase in corn production in South Africa compensates for a possible decrease in second crop corn in Brazil, where soon followed by Argentina, begin to harvest, which will increase the number of export proposals.


For South Africa official forecast corn production increased by 2.4% to 15.5 million tonnes, 1.5 million tonnes higher than the figure recorded the previous season, while private analysts estimate it at 16 million tons.


Experts Agroconsult reduced compared with the March forecast evaluation of the second corn crop (safrinha) in Brazil in 2020 with at 74.7 to 71.7 million tonnes due to a decline of 10% yields in some regions due to drought. In the state of Mato Grosso, which is the main producer of corn safrinha, began harvesting corn, the yield of which is currently estimated at 110,8 bushel/acre or of 6.95 t/ha.


prices of Brazilian corn remain at the level of 153 to 155 $/MT FOB, while the Argentine fell to $140/MT FOB.


In the US corn planted 88% of areas, compared with 82% in average of 5 years. Due to favorable precipitation, 70% of sprouts are in good or excellent condition, which corresponds to the average 5-year average.


Today will be released a weekly report on ethanol production, but analysts do not expect its significant increase. Moreover, attempts by individual oil companies to reduce their commitment to blending of ethanol may lead to further drop in demand and reduce the consumption of corn from manolovo industry.


the July corn futures in Chicago traded at 126 $/t


Ukraine corn sown 5.3 million hectares of the planned 5.4 million ha. Good rains have replenished soil moisture reserves, but low temperatures slow down the plants development. But in a week it will be warmer and the weather will contribute to the growing season of crops.

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