Precipitation in the US and Brazil improves corn harvest prospects and increases pressure on prices

Source:  GrainTrade
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Improving weather conditions for the development of corn crops have increased the pressure on prices, which fell after oil and oil prices on forecasts of a slowdown in the world economy and lower demand.

In the Midwestern United States, after a wave of hot weather, the initial conditions for corn crops will improve. At the end of next week, the temperature will drop, which will improve soil moisture and promote plant development against the background of projected precipitation.

In the south of Brazil, there have been favorable rains in the corn and wheat growing areas, and the corn harvest in Mato Grosso is fast due to the dry weather.

In Western Europe, rains are expected in the next 5-7 days, which will reduce the impact of drought on crops.

On the Chicago Stock Exchange in July, corn futures fell 2.9% to $ 294 / t yesterday, and in December – by 6.2% to $ 258.1 / t under the pressure of improving yield forecasts.

Reports on export sales and ethanol production will be released only today, which makes it difficult for traders to analyze the market.

November futures for Black Sea corn yesterday fell 2.3% to $ 328.5 / t, all of which is 20% higher than the “pre-war” level.

In Ukraine, 4.6 million hectares have been sown with corn, which is 20% less than last year, and the work is almost completed, and the weather is conducive to the development of crops.

In the physical market, demand prices for Ukrainian corn delivered to Danube ports or the western border fell to $ 220-230 / t amid large queues of wagons at crossing points and a shortage of barges in small Danube ports.

IGC experts have lowered the forecast for world corn production in 2022/23 MY by 13 million tons to 1.184 billion tons, which will be 30 million tons lower than the harvest of 2021/22 MY. At the same time, the estimate of the world’s final stocks increased by 4 million tons due to lower consumption forecasts.

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