Corn prices are rising due to the reduction of the crop in Argentina
due to a long drought, experts Grain exchange Rosario reduced compared to the previous forecast, the estimate of soybean production in Argentina from 46.5 to 40 million tons and corn from 35 to 32 million tonnes.
moisture Deficit and high temperatures will reduce soybean yield by 12% to 2.35 t/ha and maize 7% to 6 t/ha, while the acreage remained unchanged.
BA Airasca exchange despite the long absence of rain has left the forecast production of soybeans and corn at 42 and 34 million tonnes respectively.
Reduction of rating of the corn crop in Argentina resulted in a rapid increase in the price of corn in Ukraine that has primarily a speculative component, because the export potential of 20 million tons, Ukraine exported only 10.3 million tons For may delivery at the port, the price rose to 195-196 $/t, which corresponds to 210-215 $/t FOB.
In Chicago may corn futures remain stable at the level 152,45 $/tonne, despite a record 1994 corn exports in 2,505 million tonnes last week.
the United States in 2017/18 MG exported 20,212 million tons of corn by 22.88 per cent behind the pace of exports last year.
Reduction in weekly ethanol production, rising corn stocks and falling prices for wheat inhibits the increase in corn prices.
traders believe that the high export demand for corn from the US will continue to fall through a limited export potential competitor countries. The situation may change in August, when Brazil will start to collect a second crop of corn.
Now the Gulf of Mexico FOB price of Argentine corn is 3.5 $/t Ukrainian and 17.5 $/t above the price us.