Corn prices remain under pressure from the new harvest

data on weekly U.S. export corn in Chicago fell yesterday, however, after the publication of the report on the collection of recovered to 151,25 $/t

Delayed harvest in the U.S. and the results of the elections in Argentina soon will support the world price of corn. An additional factor was the pairing information of the first part of the trade agreement between the US and China, which with 90% probability will be signed on November 15-16. China promises this year to purchase agricultural products from the United States at $ 20 billion, which corresponds to the level of purchases before the start of a trade war, and further increase the purchase of up to $50 billion.

According to the USDA, for the week, corn exports decreased by 34.7% to 380 thousand tons, which is twice lower than the corresponding indicator 2018 and does not meet traders ' expectations within the limits of 450 to 600 thousand tons Due to reduced demand from major buyers – Mexico, Colombia and Japan, in the new season, the United States exported only 3.46 million MT of corn, which of 60.14 per cent behind the index on that date in 2018.

Importers hope that under the pressure of strong competition and new crop prices will decline. But Brazilian corn more expensive in the background of the elections in Argentina, since the proposal of the Argentine corn may soon be substantially reduced.

In the presidential elections in Argentina defeated Alberto Fernandes that over time presidents Krcher in 2003-2015 was the Prime Minister and populist actions led the country to economic stagnation. Now he has promised to increase the export duty on agricultural products to fill the budget. The first step was the restriction of the purchase of currency with 10,000 to $ 200, that indicates the cancellation of market reforms conducted by the previous President.

the Harvest of soybeans in the U.S. for the week accelerated to 16% to 62% compared to 69% last year and 78% on average for 5 years, whereas the maize harvest accelerated by 11% to 41% compared to 61% last year and average of 5 years. Traders expect that on 27 October, the corn will be harvested 48% of the area, and the projected precipitation further increase the gap. But these data are released after the closing of the exchanges, so they will affect the market today.

Ukraine for the week increased exports of maize to 4.25 times to 934 thousand tons and since the beginning of the season to 3.4 million tonnes, 67.5% higher than the corresponding figure of the previous MG.

As of October 28, in Ukraine 675 acreage harvested 22.4 million MT of corn with a yield of 6.73 t/ha (6.9 t/ha in 2018), which corresponds to the rate of last year.

the EU for a week imported 286,1 thousand tons of maize, and since the beginning of the season and 6.4 million tonnes, which is 25% higher than the corresponding figure 2018, This gives us hope for a revitalization of exports from Ukraine, whose share in the European imports of 1.78 million tonnes, though most of the corn (3,98 million tons) Brazil set.

the Rains prevent harvesting of maize in France, where threshed, only 46% of areas, compared with 91% last year. This reduces the supply of corn to the EU market and increases its imports from Ukraine.