The purchase price of corn in Ukraine began to fall
Strong volatility in the global corn market affect export prices of Ukrainian corn, which now exceeds the cost of American and Argentine corn, and therefore the first to respond to the decline in world prices.
After the wheat procurement price of corn in Ukraine, recovered to the maximum values of 260 to 262 $/t or 8750-8800 UAH/t with delivery to the port, already on Tuesday, they fell under the pressure of lower prices for U.S. corn and wheat to Russian 250-252 $/t or 8450-8700 UAH/t. Further pressure On prices, the strengthening of the hryvnia against the dollar to 27,95 UAH/$.
behind exporters, processors raise prices to 8450-8500 UAH/t with delivery to the plant, but yesterday have reduced their 8200-8400 UAH/t.
the March corn futures on the stock exchange in Chicago yesterday unexpectedly rose by 2% to 217,8 $/t against the recovery of the prices of soybeans and oil. Due to the delay in harvesting soybeans in Brazil corn second crop is sown only 2% of the area compared to 22% at the same date last year. This can reduce the yield potential of maize, which is mainly for export.
the corn Market was supported by the increase in ethanol production in the United States for a week, for 3 thousand barrels/day to 936 thousand barrels/day, but against the background of increasing the production of ethanol stocks gradually grow, and during the week increased by 714 thousand barrels to major in may 2020 level - 24.3 million barrels.
the price of Brent crude on Tuesday for the first time since 21 Feb 2020 exceeded the level 58 $/barrel, and yesterday continued to rise, and the April futures amounted to 58.7 $/barrel, while the March futures for WTI crude traded at 56,04 $/barrel. The market supports positive statistics OPEC+ to reduce output because the reduction plans in January was performed at 99%.
price Increase helps the decision of Saudi Arabia and several other countries over its own commitments to reduce oil production in February – March at 1,425 million barrels/day, as well as the reduction of oil reserves in the United States to 10-month low in China before the summer.
