The lack of demand from China lowers the price of corn

2021-03-04 12:02:08
Machine translation
The lack of demand from China lowers the price of corn

corn Prices on the stock exchange in Chicago and in Ukraine remain under pressure from the decline in demand, especially from China, which was not revived purchases even after the Christmas holidays.


Despite the recovery in oil prices, the corn futures in Chicago fell yesterday amid the absence of a significant export sales and data is smaller than expected, the weekly production of ethanol.


After yesterday's meeting of the Committee of Ministers of the OPEC+ have not been agreed recommendations to increase production of the participating countries, the price of oil resumed its growth.


Futures for WTI crude oil increased by 3% to 61.8 $/barrel, while may futures for Brent crude oil by 4% to 64.7 $/barrel.


According to the energy information administration (EIA), ethanol production in the U.S. after a previous fall in a week grew by 30% to 849 thousand barrels/day, while experts predicted it at the level of 725 thousand barrels/day. Consumption of corn for ethanol reached 2.2 million tons a week.


the oil Reserves in the United States as of February 26, exceeded the average 5-year rate of 3.6%, while gasoline inventories equal to 3.2%, which indicates an increase in the use of automotive fuel economy recovers.


the May corn futures on the stock exchange in Chicago yesterday fell 1.8% to 210,6 $/t, which is almost the same Friday, while the December fell by only 0.3% to 186,2 $/t. the Main reason for the fall is the lack of significant export sales and their gradual reduction that today's report will show.


Delayed the planting of corn in Brazil is not critical for the harvest, however, concern for American traders, as the collection and export of Brazilian corn will start simultaneously with the beginning of the harvest in the US, in September, will increase competition and pressure on prices for the new crop.


the interest of the European buyers of Ukrainian corn decreased, but demand from China supported prices. In the port of demand price of corn rose to 8100-8150 UAH/t or 254-255 $/t, and certified to China maize traders pay 2-3 $/t But the sellers are holding back the market in anticipation of the price 260 $/t in the port. Processors are delivered to the plant offer 7700-7850 UAH/t that is more interesting than delivery to the port.


As of 3 March, Ukraine exported 14 million tons of corn, which is 42% below last year's pace, and within 3 months must implement another 10 million tons.

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