Global corn prices accelerated their decline

The decline in oil prices by 20% in a few days at once significantly increased the pressure on the prices of agricultural crops used in the production of biofuels, in particular corn. The leader of the fall was European corn, whose futures have fallen by 9.3% since Thursday, while Black Sea corn in Chicago for the same period fell by only 3.5%, and American corn – by 3.3%, as traders hope to maintain demand from ethanol producers. Today’s production report on U.S. ethanol stocks will be an additional factor influencing prices.

January corn futures on the European Exchange Euronext yesterday fell by 10 €/ton to 237 €/ton or 2 268.5/ton, losing 9.3% of the price in a week amid falling oil prices and tougher quarantine restrictions by EU countries. The European Union is slowing down corn imports as sales by local producers increase, as well as against the background of an increased forecast for corn production in Brazil and high prices in Ukraine.

December Black Sea corn futures on the Chicago Stock Exchange yesterday fell another 2% to 2 266.5/ton, losing 4.9% in a week, while recently reached a record сезоні 279.5/ton this season.

At the same time, December futures for US corn in Chicago, despite the collapse in oil prices yesterday, fell only 2.2% to 2 223/ton, and today they have already recovered to 2 225.5/ton, which corresponds to the level of early November.

In Ukraine, purchase prices for corn in ports decreased to 2 263-265/ton, and Hryvnia prices fell to UAH 8000-8050/ton due to the strengthening of the national currency.

Traders are interested in whether China will resume active purchases of Ukrainian corn, as corn prices on the Dalian stock exchange in November rose by 12.5% from 2,429 to 2,734 yuan/ton, and January futures yesterday reached 2,660 yuan/ton or 4 417.5/ton.