Corn prices increased by 5% and was close to the psychological level of $6 per bushel

Yesterday on the Chicago stock exchange, the may corn futures rose 5% to 5.94 $/bushel, came close to the psychological level of $6 per bushel, and almost reached the level of prices for soft wheat.

Driver of price growth were the weather conditions in the US, where in the Western States reigns drought, and on the Northern and Southern plains during the week night frosts are expected to -2...-5 degrees, which will delay the corn and reduce soil moisture reserves.

the stock Exchange has also supported the growth of domestic corn prices in Brazil to a record 105 BRL/bag or 307 $/t

As of 12 April, the first corn crop (primarily consumed within the country) accounts for 58.6% of the area, which is 3.8% more than last year. However, the supply of corn late, suffering from what the buyers. Corn second crop is sown 99.6% of the areas, and 76% of the crops are in good condition, although the average of these 93%. Weekend in the regions of growing corn second crop (from Mato Grosso to the state of Minas Gerais) were strong rains, which have improved the condition of crops. Precipitation will continue this week.

According to the Association of EIA, ethanol production in the U.S. last week fell by 34 thousand barrels to 941 thousand barrels/day, which is 10% less than dikarantina level. However, ethanol stocks decreased by 124 million barrels to the lowest since Nov 2020 level – 20,518 million barrels.

Today's weekly report on export sales in the U.S. will have a significant impact on prices as on the physical market demand for corn is low and buyers are mainly interested in the grain of the new harvest.

On the stock exchange in Dalian futures on corn grew by only 0.6% to 2691 yuan/MT or 411,45 $/t

In Ukraine procurement corn prices remain at the level 250-253 $/t or 8000-8050 UAH/t, since the export prices of the demand does not change, but willing to buy expensive Ukrainian corn is not a lot. The price of corn from the new harvest for delivery in November rose with 200-210 $/t to 215 $/t

Ukrainian to sellers who still have stocks of corn should use stock price jump and to sell grain at high prices, not hoping for further gains ahead due to weather problems in the United States and Brazil.