Crop reductions in the US and EU support corn prices — CoBank
Corn prices rose 20% over the last quarter amid expectations of tighter supply in the US and EU, as well as lower shipments from Ukraine. This is according to CoBank’s quarterly report.
The US corn crop is forecast at 15.8 bln bushels, down 7% from last year. Lower production is raising concerns over grain availability and supporting prices, while higher prices could weigh on domestic demand.
The situation in the European Union also remains tight due to a significant reduction in the crop. At the same time, lower shipments from Ukraine are further limiting corn availability on the global market and supporting prices.
Some relief for the global balance could come from a record corn crop in South America. However, the expansion of ethanol production in Brazil is increasing domestic corn demand, which could limit the volumes of grain available for export.
According to CoBank, the global wheat market is also facing tighter supply. Combined wheat exports from Ukraine and Russia could decline by 11% year on year this season to their lowest level in five years, forcing importers to seek alternative sources of supply.
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon