Oil prices resumed growth, which supported corn prices
Another package of sanctions against Russia, which has waged war against Ukraine, includes an embargo on Russian oil supplies to the EU, which increases pressure on oil prices and, consequently, supports corn prices.
June futures for Brent crude oil at London’s ICE Futures after falling 4.2% on Monday rose 2.5% to $ 105 / barrel on Tuesday in anticipation of new restrictions on EU purchases of Russian oil. However, prices are mostly affected by declining demand from China due to a new wave of coronavirus. The market is also reacting to Libya’s plans to resume oil supplies and anticipation of a new agreement with Iran.
In Russia, on April 1-19, oil production amounted to 10.11 million barrels / day, which is 8.2% lower than in March. The amount of oil stored on tankers rose to 103.47 million barrels.
May corn futures in Chicago remain above the psychological level of $ 8 / bushel and are trading at $ 315 / ton. They are supported by the delay in sowing corn in the United States and the early onset of heat in Brazil, where second-harvest corn is grown.
Due to cold and rainy weather, corn in the United States on April 25 sown only 7% of the planned area, which is 8% lower than the average 5-year figure.
During the week of April 14-21, exports of corn from the United States increased by 40% to 1.65 million tons, and in the season reached 34.9 million tons of the projected USDA 63.5 million tons.
In Ukraine, seaports remain blocked, so the main supplies of corn go to Poland and Romania. Demand prices for supplies to Constanta, Romania, fell another $ 10-20 / t to $ 280-290 / t, while CPT supplies to the port of Reni or Izmail remain at $ 240-250 / t, but long queues are holding back purchases.
South African authorities predict that the corn harvest will fall by 9.8% from 16.315 to 14.723 million tons compared to the previous season, which will support corn prices in the new season amid a possible decline in second-harvest corn production in Brazil.
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