The decline in oil prices increases pressure on the prices of corn

ahead of the meeting of OPEC members+ that will be held July 15, the price of oil began to fall, putting pressure on the prices of corn.

crude oil Futures Brent fell by 2.4% up to 41.95 $/barrel and WTI crude oil – by 2.8% to 39.3 $/barrel.

the Threat of strengthening of quarantine through the acceleration of the spread of the pandemic Covid-19 will increase the pressure on the oil market. According to who, the number of infected people in the world for the day grew to a record 230 thousand, in particular in the United States 10 July recorded the highest number of cases – 69070 people.

At the meeting of the Ministerial monitoring Committee of OPEC+ will assess the current state of the oil market and the compliance with the restrictions. Traders, fearing harsh decisions, record profits.

Following the oil prices, the stock prices of maize in the United States, even despite the deterioration of crop conditions declined by 3.35 $/t to 129,2 $/t for September and 135,6 $/MT for the December contracts. So far, the forecast hot and dry weather in the U.S. Midwest failed, however, in the next 7-10 days, these weather conditions can adversely affect crops, 29% of which are in the flowering stage, compared to 14% on this date last year and 32% on average for 5 years. For a week the number of crops in good or excellent condition decreased by 2% to 69%, whereas a year ago the figure was 58%.

corn Exports from the U.S. last week fell by 13% to 902,6 thousand tonnes, which although higher than 31% in the corresponding period last year, but worse than expected by experts 900-1200 thousand tons Purchased by China 120 kt will not help to close the gap in the rate of export. Since the beginning of the season, the United States exported 35.2 million tonnes from the USDA projected 45 million tons of corn, and unlikely to be able to 8 weeks to export another 10 million tons.

Ukraine weather promotes the formation of new crop corn prices, which for shipments in October-December remain at 148-152 $/t at the port. Offers of corn of the old crop on the market are almost absent.

the European Union during 1-12 July imported 357.5 thousand tons of corn, mainly due to the increase in supplies from Brazil and Canada.

Brazil in June only exported 350 thousand tons of corn, while in June 2019 exports reached 1.2 million tons. Experts believe that the increase in domestic demand and high domestic prices will not allow the country to recover from the pace of exports.