The recovery of exports from Argentina increases the pressure on corn prices

Delivery of grain in Argentine ports is getting better, and ports Up-River, Quequen and Bahia Blanca have been restored acceptance of product. Local authorities allowed the passage of trucks, which was restricted by quarantine regulations in the cities, which led to the rapid increase in world corn prices last week.

the Argentine Government is working with local authorities and trade unions, trying to restore the export to avoid the financial collapse of the economy.

In March, grain exports amounted to 1,065 billion, which is 6.9% less than the corresponding period last year, as the quarantines prevented the transportation of grain to ports.

In Argentina were thrashed, which is 22% from 6.3 million hectares of corn and 8.1% from 17.4 million hectares of soybeans. According to experts BAGE, compared to last year the harvest of soybeans will decrease from 55 to 49.5 million tonnes, while the corn harvest will remain at 50 million tons.

These data have lowered the price of Argentine corn in the $2-3/t to 170-172 $/t FOB, then the black sea corn also fell to the $2-3/t to 178-179 $/t FOB.

the May corn futures in Chicago yesterday fell to of 131.2 $/MT, but later rebounded to the opening level – 132,3 $/t after the rise in oil prices and amid good exports.

Export sales of US corn for the week decreased to 1.07 million tons, which is 73% higher than the corresponding period last year. Corn exports for the week amounted to 1.2 million tons, and the whole season is 18.3 million tons Reduction in demand from ethanol producers increases the volume of export offers, which leads to lower prices for U.S. corn on a FOB basis US Gulf.

Konkurentno the price of U.S. corn compared to the Ukrainian confirmed winning the tender in Algeria, where was April 1 contracted 40 thousand tons of feed corn produced in the USA at a price 192-193 $/t C&F.

Following the increase in forecast corn production in the US, the Ukrainian grain Association has increased its forecast of corn production in Ukraine in 2020/21 MG 7% to 36.8 million tonnes, 1.6 million tonnes will exceed the previous season. It is expected that the sowing area of maize in the new season will increase by 10% due to reduced planting acreage of spring barley.