Corn prices rose 4% on news of USA and Argentina

2019-12-16 12:09:45
Machine translation
Corn prices rose 4% on news of USA and Argentina

the signing of the first part of the trade agreement between the US and China provides for the cancellation of the planned December 15 the increase in fees by both parties, as well as the reduction of the existing duties in early January, after the document signed by trade representatives of countries, not heads of state, as previously planned.

 

the agreements will reduce the US trade deficit and increase two-year imports of American products to China to 200 billion $.

 

China confirmed the postponement of the scheduled for December 15, increase duties on goods from the United States, but did not provide detailed information on the volume of imports.

 

Information about import corn from the US to Rитаю, although within a certain quota, has led to a rapid increase in maize prices after prices for soybeans and oil.

 

the corn Futures in Chicago on Friday rose by 4% up to 151.8 $/t on the news about a trade agreement and increase in export demand from Mexico.

 

For the week, export sales of corn increased by 60% to 873,5 million tonnes, which exceeded expert expectations and actual exports by 7% to 531,4 thousand tons.

 

Export sales of corn from the US is much inferior to last year and accounted for only 15.4 million tons, compared to 27,6 million tons this date last year that a lot of pressure on prices.

 

the news of the suspension of export of Argentina and the increase in the export duty will be this week's main driver of growth in world prices of maize, including in the United States.

 

Ukraine last week exported 957 thousand MT of corn, and since the beginning of the season and 9.4 million tons, which is 28% higher than the corresponding figure last year.

 

Prices on supplies of Ukrainian corn in December-January remain at the level of 172 and 173 $/t FOB, but traders expect a revival of demand in January amid a decline in exports from South America amid rising consumption in Asia.

 

South Korean manufacturer of animal feed MFG bought 60 TMT of Ukrainian corn for delivery in February 2020 at a price 207,5 $/t C&F, which corresponds to 172 and 173 $/t FOB.

 

At the port of demand prices for corn remain at 159-160 $/t or 4450-4470 UAH/t and farmers actively sell grain, not relying on the growth rates.

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