Corn quotes in the US for the week rose by 7.5% due to a possible decline in the harvest

The attention of the market is focused on the four-day monitoring of the condition of crops, which is conducted by PRO FARMER in the USA. Surveys of the western regions of the “corn belt”, where there was a long drought, showed that in the states of Ohio, Iowa, South Dakota, Nebraska and Indiana, the yield is below last year’s average. On Wednesday, monitoring was carried out in the eastern regions, and in Illinois, the second largest corn-producing state in the US, unfortunately, similar trends persist in many corn fields. Soybean crop prospects in the eastern US are also better than in the west.

December corn futures on the Chicago Mercantile Exchange rose 7.5% for the week to a two-month high of $260/t, but remain 9% lower than three months ago.

Further price gains are capped by weak corn demand, which may be fueled by news of a likely decline in the US corn crop, especially given the drought in China, which could also weigh on corn production.

Against the background of a decrease in its own harvest, the European Union is increasing its corn imports, and since the beginning of the season it has already purchased 3.23 million tons, which is 58% higher than last year’s corresponding figure.

November corn futures on Paris Euronext were up just 1% for the week at €321/t, or $321.8/t, and remain 11% lower than three months ago. This confirms that the fall in demand is restraining the rise in prices.

October futures for Black Sea corn in Chicago for the week rose by 0.8% to $317.5/t, losing 6.1% of the price in three months.

Demand prices for Ukrainian corn, following world quotations and against the background of increased procurement in Black Sea ports, rose by $10-15/t to $190-200/t SRT for a week. After the reduction of supplies from Ukraine to the western borders in anticipation of the resumption of port operations, demand prices from the EU increased to $250-290/t DAP Moldova, Poland, Hungary and Romania.

Tags: EU, prices, Poland, USA, Hungary, Ukraine, corn, Romania