Purchase prices for corn fall under pressure from the new crop
The bearish October report of the USDA and favorable weather for corn harvesting in Ukraine and the United States, as well as for the development of crops in South America, increase pressure on corn prices. Stock quotes are still high, and purchase prices in Ukraine have already begun to fall.
In the United States, due to warm and dry weather, as of October 17, corn was threshed on 52% of the area, compared with 41% on average over 5 years. Corn exports from the United States for the week increased by 16% to the largest 976.2 thousand tons since the beginning of the season, and in general, 4.08 million tons have been exported since September 1, which is significantly lower than last year's pace.
December corn futures rose 3.9% to.209.5/ton in the next three sessions after the fall caused by the October USDA report on Tuesday, amid high oil prices and the expected increase in demand for ethanol from China.
November corn futures on the Paris Stock Exchange also fell by 4% after the report was released, but over the next three sessions they rose by 2% to 245.25 €/ton or 2 285.6/ton, even despite the delay in harvesting in France, where as of October 11, corn was threshed only on 15% of the area compared to 62% last year.
In Ukraine, purchase prices for corn in ports against the background of an increase in offers decreased by 1 10-12/ton to 2 255-259/ton or UAH 7550-7800/ton. as of October 13, 22% of the areas were threshed, from which 6.92 million tons of corn were harvested with a yield of 5.75 t/ha. This confirms production forecasts at the level of 37-39 million tons. dry and frosty weather helps to reduce moisture in the grain, which accelerates harvesting.
In Brazil, heavy rains continue, which have reached the central regions, where most of the soybeans and corn of the first crop are grown. Farmers have stepped up sowing and as of October 14, 45% of the planned areas were sown with corn, compared to 44% last year, which will increase pressure on prices against the background of favorable precipitation.