Corn prices are rising amid dry weather in the EU and Ukraine

Corn prices continue to rise against the background of hot weather in southern and southeastern Europe and a lack of precipitation in southern and central Ukraine, as well as forecasts of increased heat in the United States over the next 2 weeks.

Traders expect little change in USDA's July corn balances due today, except for a slight increase in the U.S. production forecast due to expanded plantings.

According to the data of the Grain Exchange of Buenos Aires, as of July 6, in Argentina, corn was harvested on 53% of the area compared to 56% last year and 64% on average for 5 years. Despite the dry weather, exchange experts forecast the corn harvest at the level of 49 million tons, while the USDA estimates it at 53 million tons.

The agency Conab reports that as of July 2, corn of the second harvest has been harvested on 28% of the area, while last year at this time 15% of the area was threshed.

In the US, as of July 10, 64% of corn crops are in good or excellent condition (65% last year), but the predicted heat of 30-35 ^o C without precipitation for the next 10-14 days may negatively affect crops, especially those in in the flowering phase.

For the week, December corn futures in Chicago rose 9% to $247.6/t, although they fell 12.6% for the month.

On the Paris Euronext, November corn futures for the week rose by 13.5% or €38.75/t to €326.5/t or $326.9/t, losing 2.5% for the month.

Demand prices for deliveries of Ukrainian corn to the ports of Reni and Izmail remain at a low level of $190-200/t, and to the port of Constanta - at the level of $280/t. The intensity of deliveries is decreasing due to the increase in the cost of delivery and the intensification of purchases of early grains - wheat and barley.

Due to different amounts of precipitation, there is an uneven development of corn crops in different regions of Ukraine. In the south and in the center, crops develop with a delay due to the lack of moisture and heat in May and June.