Following crude oil prices, corn futures rose by 3 at once%

Since the beginning of the week, corn prices on the Chicago Stock Exchange have risen 3% following oil prices after Russia recognized the so-called LPR and DPR and led its troops into Ukraine, forcing Western countries to impose a number of sanctions against it.

At the beginning of last week, after the Russian authorities announced the withdrawal of troops, oil fell slightly, but since Monday, quotes have risen by 4% to an 8-year high amid violations of Ukraine’s sovereignty and the risks of a full-scale military invasion of Russia in other regions of Ukraine. April Brent crude futures on London’S ICE Futures rose 4% to 9 97.2/barrel, while March WTI crude futures on the New York electronic Mercantile Exchange (NYMEX) rose 1.5% to 9 92.35/barrel.

Against the background of rising oil prices and risks of reduced corn exports from Ukraine, March corn futures on the Chicago Stock Exchange yesterday rose by 3% to 2 265/ton, adding 5.5% of the price over the week, while March Black Sea corn futures – by 0.9% to.291.25/ton (+2.5%).

Prices were supported by data on corn exports from the United States, which for February 11-17 increased by 8.3% to 1.577 million tons, and in general in the season reached 21.64 million tons, which is 11.8% lower than last year’s pace and is only 35% of the USDA forecast for 2021/22 MG.

In Ukraine, purchase prices for corn in ports remain at the level of 2 273-275/ton, but due to the growth of the dollar exchange rate, Hryvnia prices increased by 150-200 UAH/ton to 8900-9000 UAH/ton.

The pace of corn exports from Ukraine remains quite high. From February 1 to February 21, 3.165 million tons were shipped, and in general in the season – 18.68 million tons of corn, which is 41% higher than the corresponding last year’s figure and is 58% of the forecast.

Traders ‘ attention is focused on Argentina, where grain inspectors have launched a 24-hour strike. It applies only to domestic grain elevators and interferes with the transportation of grain to river and sea terminals, but the work of ports and export shipments of grain has not yet stopped. Extending the strike for a longer period of time may be a new factor affecting prices.

This week in Argentina there will be light precipitation, so experts of the Bage exchange left the forecast of the corn harvest in the country in 2021/22 MG at 51 million tons, although they allowed the possibility of its further reduction due to prolonged dry weather.

GrainTrade 

Tags: Russia, corn, prices, Argentina, Ukraine