Corn prices grow before the release of the updated balance USDA

on Thursday, corn futures on the stock exchange in Chicago rose 1% amid active buying of traders on the eve of tomorrow's hotly anticipated Wasde report, which is expected to show an 11-percent drop in global ending stocks. Support to quotations was rendered also unexpected increase in ethanol production over the last week.

the December corn futures yesterday reached the level of 144$/ton, the highest level since early March, despite a difficult global balance of corn compared to last season, and uncertainty in consumption growth due to low oil prices, as well as the development of a pandemic Covid-19.

Today the market will get a lot of news that will affect the price, will report the weekly sales of corn, as well as the September USDA report.

Experts expect lowering its forecasts of the corn crop in the United States and Ukraine on 8 and 5 million tonnes, and small increases for Brazil by 2-3 million tons.

Prices for Brazilian and U.S. corn for delivery in September rose to the level of 180-185$/MT FOB, while Ukrainian maize rose to 184-185$/t FOB, but it is worth noting that prices for delivery in Asia remain at about 214-217$/t CFR, and buying activity is very low, as there were a lot of purchased maize at prices ranging from 190 to 215$/ton CFR with the delivery until the end of the year.

Demand from China remains the key, but even buying from the US is slowing down lately, and the demand for podorazhalo Ukrainian corn is very diminished.

Growth stocks of soybeans and soybean meal in China suggests that the market of fodder of China continues to fill and soon may start reducing demand.

the Beginning of last week in deep-sea ports of Ukraine there is an increase in corn prices next harvest.

"Support prices have had a previous substantial rise in price of grain on FOB basis amid rising purchasing activity of Chinese importers, as well as the decline in number of agencies of the potential production of the American, Ukrainian and Romanian grain due to unfavorable weather conditions.

During this period, prices traders demand for corn next harvest increased by 250-300 UAH/t and as at 10 Sep voiced within 5450-5650 UAH/t CPT-port.

the Dollar prices of demand up to the reporting date increased by 3 to 7 USD/ton, and basically be 167-171 USD/t CPT-port, and in some cases reach 173-USD/t CPT-port.

the Saturation of the market offers new crop will lead to increased competition for markets American and Ukrainian corn, which will be 35-40 million tons more than last year, and if Brazil can increase planted areas was projected in the second half of the marketing year, the market may fall after the rapid growth at the start.