Corn prices in Ukraine are growing after the world

2019-12-17 12:03:52
Machine translation
Corn prices in Ukraine are growing after the world

After petnickog rapid rise in price of corn futures in Chicago, traders were expecting growth of prices on the exchanges and physical markets. Additionally, the quotes supported the markets for wheat and soybeans, which are also rapidly growing from the beginning of the week. In Ukraine corn prices go up after the world, but their growth is limited by low export prices at FOB.


the Main factors supporting prices remain the progress in the negotiations between the US and China, as well as an increase in export duties on corn in Argentina from 7% to 12%.


Experts believe that in addition to increased domestic consumption of ethanol, USA under the terms of the trade deal can significantly increase its exports to China.


Production of ethanol in USA is gradually increasing. Daily average production for the last 14 weeks was 1,008 million barrels, which is 12 thousand barrels more than in the previous period.


corn Exports revived due to the recovery in demand from Japan and Mexico. For the week, the United States exported of 686.7 thousand tons of maize, which is a maximum of 17 weeks.


March corn futures in Chicago rose yesterday by 1 to 152,8 $/t, whereas on the physical market price has risen by $5/t up to 175 $/MT FOB US Gulf.


After increase of export duties on Argentine corn, in Vietnam, which is its main buyer, the prices also increased by 5 $/t to 211-215 $/t CFR for shipments in March-April.


the Growth of prices of competitors will raise prices for Ukrainian maize, which remains the cheapest in the world market and is offered at 173-175 $/t FOB compared with the Brazilian at 185 $/t FOB and by the Argentine 175-176 $/t FOB.


the Purchase prices for the Ukrainian corn in the port increased up to 160-161 $/t for December deliveries, while for January remain at 162-163 $/t, whereas bid prices are 165-167 $/t


This week the markets will wait for the reaction of Asian buyers on rising world prices and increased purchasing of maize.

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