The lower crop forecasts and the heat in the USA has led to a sharp increase in maize prices

After the "bearish" USDA report increased the forecast of the corn crop in the world, and especially in the US, the August heat made adjustments in the evaluation of production, which led to a sharp speculative rise in the price of corn.

According to the weekly monitoring by the USDA, due to the heat that prevails in the United States, the amount of corn in good or excellent condition for the week decreased by 5% to 64%, whereas a year ago the figure was 57%.

the Experts at Pro Farmer after the crop tour forecast maize yield in the United States in 2020 on the level 177,5 bushels/acre, and the gross yield - 376,5 mln t, while in the August USDA report they were estimated at in 181.8 bushels/acre and 388 million tons respectively, and in 2019, the harvest amounted to 345 million tons.

against this background, the December corn futures on the stock exchange in Chicago Monday rose by 4.8% to 140,1 $/t

Daily ethanol production in the United States increased by 5 thousand barrels to 931 thousand barrels, which corresponds to the processing of 2.38 million MT of corn for a week and suggests that the recovery in demand for ethanol stopped, and more than a month remains at a level 12% lower than last year.

In the US, the number of infected Covid-19 reached 5.8 million, and the dead through him 180 thousand people. In the case of increasing the number of patients in the fall can be strengthened constraints and the demand for fuel will decrease.

the Market for U.S. corn has supported the growth of prices for Ukrainian maize, caused by the sharp decrease in the crop forecasts due to the prolonged drought of August in the Central and southern regions. Local experts lowered estimates of the harvest of 33.5 to 36 million tonnes compared to the August USDA forecast of 39.5 million tonnes and collected in 2019 35.5 million tons.

the Purchase prices on the supply of Ukrainian corn of the new harvest in November-December at the port increased from 150 to 152 to 160 to 162 $/t, but sellers are holding back sales in expectation of further price increases.

Precipitation the last few days has reduced the stress for crops, but some crops have already withered away or went to the silo.

in the Near future corn prices will be driven by increases in the deferred proposal by Argentina and Brazil, where farmers restrain sales. Due to the dry and warm weather the United States will begin collecting early as August 23, there 5% of the crops were ready to harvest.

due to the growth in domestic corn prices to a record high of 60.41 R/t, and prices for soybeans and rice, the government of Brazil temporarily reduces import duty on these crops, accounting for 8-12% to increased supply from countries outside the South American free trade group MERCOSUR.

This decision has reduced the domestic price of maize, especially on higher experts of the Conab forecast of sowing areas of maize by 7% and crops in 2020/21 MG to 113 million tons, compared with 107 million tons in 2019/20 Mr.

the Farmers of Argentina have stepped up the sale of corn, and this week has registered exports of more than 1 million tons.