The growth of corn prices on world stock exchanges supports purchase prices in Ukraine

Information about the easier course of the disease from the Omicron coronavirus strain compared to others contributes to the recovery of markets and higher prices for oil, soybeans and corn. February oil futures for the week rose by 5%, and March corn futures – by 2%, crossed the psychological level of 6 6/bushel, reaching 2 238/ton, which is a 6-month high, and approaching the May record of.250/ton.

Against the background of rising stock prices and rumors about the next purchase of Ukrainian corn by China, purchase prices in Ukraine increased in ports above 2 260/ton or UAH 8,000/ton.

Traders expect an increase in corn supplies from the new year, so they do not raise prices even against the background of delayed loading of ships due to bad weather.

As of December 23, Ukraine exported 9 million tons of corn out of the projected 32-33 million tons, so over the next 3-4 months it is necessary to step up shipments, especially given the increased competition with American corn and the entry of Argentine corn into the market in the spring.

March futures for Black Sea corn for the week rose only by 1 1.75/ton to 2 275.75/ton, remaining at a high level for 3 months.

March European corn futures on Paris Euronext for the week rose by 3.25 €/ton to 243.75 €/ton or 2 276.3/ton, which limits the growth of prices for Black Sea corn.

Export sales of corn from the United States for the week of December 10-16 fell to a 5-week low of 982.8 thousand tons, and in general in the season reached 39.5 million tons, which is 6.5% lower than last year's figure. The actual export of corn for the week amounted to 1.1 million tons, and in general in the season reached 12.74 million tons, which is 1.1% lower than last year's pace.

According to the Energy Information Administration EIA, during December 11-17, ethanol production decreased by 3.45 to a three-week low of 1.051 million tons amid falling oil prices and refining margins, although ethanol reserves decreased by 0.18 million barrels to 20.705 million barrels.

On the eve of the long Christmas weekend, traders actively conducted speculative purchases, fearing worsening weather conditions in Argentina and Brazil, which could reduce the harvest and raise corn prices in the United States. However, precipitation forecasts for South America next week reduce concerns.