Corn prices remain under pressure of offers and low demand
the Harvest of corn in the United States remains the main factor that influences prices that are under pressure from low demand from major customers.
According to the USDA, as of November 3, corn in the USA is collected on 52% of the area compared to 74% last year and 75% average over 5 years. Warm and dry weather in the next 7-10 days will facilitate the collection and reduce the moisture content of the corn. Rainfall last week increased the moisture content of the corn and increased its cost due to the need for further drying.
Weekly exports of corn from the US was lower than traders ' expectations, and was only 275,575 thousand tonnes, 78.5% less than the corresponding indicator in 2018 With the beginning of the season the United States exported 3.75 million tonnes of corn, which is almost three times lower than in the same period last MG.
the December corn futures yesterday fell 1% to 151,17 $/t
In Ukraine as of November 4, with 81% of the area harvested 27.6 million MT of corn, which will allow you to harvest at the level of 34.5-35 million tons.
corn Exports from Ukraine in a week decreased by 25% to 692 thousand tons and since the beginning of the season is 4.31 million tonnes.
the Market supports domestic corn demand from the EU, who last week imported 257,9 thousand tons of maize, and since the beginning of the season was 6.75 million tons, of which 60% was acquired in Brazil.
Prices of Ukrainian maize rose to 168-170 $/t FOB, while the bid price for December deliveries do not exceed 166-167 $/t FOB amid strong competition from South America.
Argentina due to the increase in production to 51 million tonnes exported from March to October, a record 27.3 million tonnes of corn, surpassing the previous record 2016/17 MG at 21.5 million tons, the Expected increase of production stimulates export sales of corn for future harvest, that mid-October was 11.4 million tons compared to 4.3 million tons on that date in 2018.
Prices for Argentine and Brazilian corn grew 165-174 $/t FOB, which is the price of U.S. corn at 175 $/MT FOB US Gulf.
the price of the supply of corn to South Korea and Vietnam in December-January rose to 205-209 $/t CFR, but further slight growth limits demand.