Purchase prices for corn in Ukraine lost 1 10 / ton in a few days and continue to decline

As predicted, the acceleration of corn harvesting in the Northern Hemisphere, as well as forecasts of an increase in the global corn crop, turned prices around after a rapid increase.

The decline in world oil prices and an increase in corn supplies to ports led to a pullback in corn prices by about 1 10/ton, leveling the growth in the previous week.

January Brent crude futures on the ICE Futures Europe exchange continue to recover slowly after falling a week ago, but are trading at 8 83.3/barrel, while December WTI crude futures on the New York NYMEX exchange fell by 8 81.8/barrel, which is almost the same as a month ago.

In Ukraine purchase prices for corn on Friday and yesterday, they actively declined, and in general lost about 1 10/ton to 2 260-263/ton, or 7700-7750 UAH/ton with delivery to the port against the background of increased sales volumes and increased deliveries to the port.

Collection corn in Ukraine it was completed on 61% of the area, or 3.3 million hectares, 22.8 million tons were threshed with a yield of 6.82 t/ha, which confirms the harvest forecasts of about 38-39 million tons this season.

The cost of delivery to ports remains at a high level of about 1000-1400 UAH/ton, which will continue to restrain mass deliveries of corn to ports, but deliveries under forward contracts have increased, while companies are forced to overpay for delivery in order to avoid fines for non-delivery.

December corn futures on the Chicago Stock Exchange declined during the week after a sharp rise in price on Monday, which generally lost 5% and is trading at 2 216.9/ton.

Traders expect that in today's supply and demand report from the USDA, an increase in the US corn crop is possible, as well as an increase in Final stocks. In addition, weekly data on corn export sales from the United States showed sales of 1.22 million tons for the week to October 28, and total export sales in the new season reached 31 million tons, which is 6.6% less than a year ago.

Actual corn exports from the United States for the week ended November 4 amounted to only 563.1 thousand tons, which is 19% less than a week ago, and exports since the beginning of the season reached 6.037 million tons, which is 21% less than a year ago.

According to Crop Progress data from the Nass USDA, corn in the United States as of November 7 was harvested on 84% of the area, which is 6% less than a year ago, but 6% more than the average for 5 years. For the next week, dry weather is forecast with light precipitation and a drop in temperature to -2+8, which will speed up harvesting against the background of a decrease in corn humidity.

Corn sowing in Argentina is still slow due to a lack of precipitation and as of November 4, 28.4% of the area was sown, but the Buenos Aires Stock Exchange leaves the production forecast at the same level. Additional precipitation is forecast for Argentina and Brazil this week, which will continue to increase pressure on soybean and corn prices for delivery in the new year.