Active export support corn prices

the corn Futures in Chicago rose for the week by 0.8% to 145,9$/t in July, against precipitation in the form of snow, which hit US on weekends and export growth of corn in a week. With the support of Chicago as well as strong demand and lower supply – prices of maize in Ukraine is also a bit stronger.

Snow and cold weather in the Midwest will further delay planting of corn, which is made on the area of 5-6% of the forecast, which could lead to the displacement of the structure planting in favor of soybeans.

Support to quotations was rendered report data on export of maize from the U.S. for the week at 1,182 million tons, 11.2% more than a week ago. The good pace of exports and strong demand for U.S. corn is observed despite the increase in the supply of Argentine and Brazilian corn.

Intensified demand from Japan, South Korea and Taiwan, which bought the volumes from the ports of the Pacific coast of the United States.

Estimate of the corn crop in Brazil 2018/19 MG was raised once again by analysts that the Brazilian Agency Conab 1.2 million tons to 94 million tons, which is 16.5% higher than the season-2017/18 (80.7 million tons).

In the market of corn in Ukraine is the situation when the prices of demand CPT-port are growing, and the demand price at the FOB level remain the same due to the reduced supply of maize from producers. Therefore, traders had to raise prices in the port to the level 161-163$/t, or 5150-5200грн/t to raise volume . The bid price on FOB basis remain at the level of $ 170 / t for delivery in may that the cost of transshipment of around 10$/t gives the maximum price CPT port about 160$/t. Traders are waiting for the results of the tender in Turkey, to purchase 300 thousand tons of corn, which closes April 24.

increased purchases of maize processors in Ukraine also supports the high level of prices on ex elevators and is good competition for the export market.

corn Exports from Ukraine in the last week decreased to 592 thousand tons, against 796 thousand tons a week earlier, but since the beginning of the season as of April 15, Ukraine exported 22 mln tonnes of maize, 39% more than in the same period last year. Export forecast of about 27.5 million tons will be achieved despite increased competition from South American corn at the expense of export growth in Iran and South Africa that have suffered because of drought.

https://graintrade.com.ua