Delay harvesting in Brazil supports corn prices of the old crop

According to the Department of agroeconomic Deral, in the Brazilian state of paraná, which is a major producer of corn, grain harvest for the week has progressed only 1% and as of 22 June amounted to 4% of the plan, whereas a year ago on this date was threshed 34% of the area.

at the same time the amount of corn in good or excellent condition for the week increased from 42% to 44%, compared with 82% a year ago.

the Small volume of proposals of Brazilian corn activates the export of grain from the United States and Ukraine. There were rumors that the Chinese state company had acquired a large shipment of corn from the United States, and also continues to buy Ukrainian corn. It held quotes on the level 128,4 $/t, despite the sharp drop in oil prices.

prices of Brazilian corn remain at 155-160 $/t FOB, while the us rose to 160 to 162 $/MT FOB, while Ukrainian – 183-185 $/t FOB.

Low price South American corn and cheap freight intensify competition with Ukrainian maize on the Egyptian market. In may-June the supplies of South American corn in Egypt was 5-10 $/t lower than Ukrainian. However, despite the increased competition from Romania and South American countries, the share of Ukrainian maize on the Egyptian market in 2019/20 Mr reached almost 36% or 2.4 million tons, whereas in 2018/19 MG were 32%. The share of South American corn now makes up 41%, but it may increase. Since March Ukraine will reduce exports of corn in Egypt, while Argentina is increasing it, and since July, will join Brazil.

On the back of high export demand for Egypt increases corn imports in 2019/20 Mr acquired (as of June 1) of 6.15 million tonnes of grain, which is 19% higher than the corresponding period last year. Consumption of fish and poultry meat remains high because of increasing population, resettlement of 5 million refugees and the transfer of rations on higher quality products.

In Ukraine, purchasing prices for maize remain high due to low inventory levels, which as of June 1, according to Gostamsluzhby, decreased by 29.1%, in particular from agricultural producers by 14%, at the enterprises for storage and processing – for 45.3%.