The increase in sentences may reduce corn prices

2021-01-22 12:05:22
Machine translation
The increase in sentences may reduce corn prices

After a slight decline early in the week corn prices recovered again to a high level, however, the decline in demand due to skyrocketing prices and increased supplies from Ukraine and Argentina in the near future will lead to price adjustment.

 

On the stock exchange in Chicago corn futures last week reached a multi-year high, and is now gradually declining, since factors less than pressures on prices. Quotes supports dry weather in Argentina, however, the resumption of exports from the country and the refusal by some Asian refiners of corn for the benefit of Australian feed wheat that has the same price, reduces the speculative demand for futures and forcing speculators to close positions as the market is considered "overbought". In the near future the market will follow the predictions of an increase in sowing areas of maize in the USA in the new season and news about the outbreaks of ASF in China that will lower prices.

 

during the week, the March corn futures on CBOT fell by 2.8% to 204,4 $/t. They were supported by the data on export sales of 360 thousand MT of corn to an unknown destination, and traders hope that China will resume purchases.

 

on Monday the United States was the weekends, so just today will be published weekly reports on export sales and the volume of processing of corn for ethanol, which will significantly affect the dynamics of prices.

 

On the physical market of us and Argentine corn is offered at 240-250 $/MT FOB, while Ukrainian has risen to 265-270 $/t FOB, though buyers from Asian countries are not willing to pay more 285-290 $/t C&R.

 

Market in Ukraine is recovering from the long new year holidays and on Monday the price rose to a peak 256-260 $/t or 8650-8700 UAH/t CPT. And the next correction to 250-253 $/t or 8450-8500 UAH/t to dramatically increase sales.

 

Manufacturers wish to sell their corn at a high price and any lower prices would encourage them to sell, especially in the case of need of working capital against the background of rise in price of fertilizers and fuel in anticipation of spring planting.

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