Purchase prices for corn in Ukraine are falling under pressure from an increase in offers

Increased uncertainty in global markets leads to increased price volatility for all commodities. Corn prices are affected by significant supply and forecasts of increased demand, but a new wave of coronavirus may reduce demand. This has already affected oil prices, which fell by 3% yesterday and may pull down fuel and corn prices.

In Ukraine, purchase prices for corn after rising at the beginning of the week in ports to 2 272-275/ton began to fall against the background of an increase in offers. Logistical problems with deliveries to the port due to difficulties with rail transportation and expensive road transportation are forcing traders to raise prices to close November contracts.

However, most large companies have sufficient stocks of corn in ports and on the road, so they lowered prices to 8000-8100 UAH/ton or 265-265 $/ton with delivery to the port.

• December Black Sea corn futures on the Chicago SWOT yesterday rose by 1 1.75/ton to.277/ton, although they reached 2 278.5/ton.

Brent crude prices fell 3% below.80/barrel, falling 6.3% since the beginning of the month.

According to the Energy Association EIA, the volume of ethanol production in the United States for the week remained almost unchanged and remained at the level of 1.06 million barrels/day, while its reserves decreased by 205 thousand barrels to 20.081 million barrels, which supported corn prices.

• December corn futures on the Chicago Stock Exchange recovered to 2 226.75/ton after a previous drop yesterday.

IHS Markit experts lowered the forecast of corn sowing areas in the United States in 2022 compared to previous estimates by 1.6 million acres to 90.784 million acres, which will be 2.8% lower than the current season's figure of 93.304 million acres, due to a rise in the price of fertilizers and an increase in wheat sowing areas.

• January corn futures on the Paris Stock Exchange rose 4.75 €/ton to 248.5 €/ton or 2 280.8/ton following a sharp rise in wheat prices.

According to the European Commission, in the current season, as of November 14, the EU imported 4.52 million tons of corn, which is 45% lower than last year's figure – 6.55 million tons due to an increase in its own production.