As predicted, the acceleration in maize harvesting in the Northern Hemisphere, as well as forecasts for an increase in the global corn harvest, turned prices around after the explosive growth.

A decline in world oil prices and an increase in the supply of corn to ports led to a pullback in corn prices by about $ 10 / t, offsetting the growth in the previous week.

January Brent futures on ICE Futures Europe continue to slowly recover from a fall a week ago but are trading at $ 83.3 / bbl, while December WTI futures on NYMEX are down $ 81.8 / bbl, which is almost the same as a month ago.

In Ukraine, the purchase prices for corn on Friday and yesterday were actively declining, and in general, they lost about $ 10 / t to $ 260-263 / t or UAH 7700-7750 / t with delivery to the port against the backdrop of increased sales and growth deliveries to the port.

Maize is harvested in Ukraine on 61% of the area, or 3.3 million hectares, 22.8 million tons were harvested with a yield of 6.82 tons/ha, which confirms the forecasts for a harvest of about 38-39 million tons this season.

The cost of delivery to ports remains at a high level of about 1000-1400 UAH / t, which will continue to restrain the bulk deliveries of corn to ports, but deliveries under forward contracts have increased, while companies are forced to overpay for delivery in order to avoid fines for non-delivery.

December corn futures on the Chicago Stock Exchange declined during the week after a sharp rise in prices on Monday, which overall lost 5% and are trading at $ 216.9 / t.

Traders expect the USDA supply and demand report to see an increase in the US corn crop as well as an increase in ending stocks. In addition, weekly US corn export sales data showed sales of 1.22 million tonnes in the week to October 28, while total export sales for the new season reached 31 million tonnes, down 6.6% from a year ago.

Actual US corn exports for the week ended on November 4 amounted to only 563.1 thousand tons, which is 19% less than a week ago, and since the beginning of the season, exports reached 6.037 million tons, which is 21% less than a year ago.

According to Crop Progress data from Nass USDA, 84% of US corn has been harvested as of November 7, down 6% from a year ago, but 6% more than the 5-year average. Dry weather is forecasted for the next week with light precipitation and a drop in temperature to -2 + 8, which will accelerate harvesting against the background of decreasing corn moisture.

Corn sowing in Argentina is still slow due to a lack of rainfall and as of November 4, 28.4% of the area was planted, but the Buenos Airean Stock Exchange leaves its production forecast at the same level. Additional rainfall is forecast this week in Argentina and Brazil, further increasing pressure on soybean and corn prices for new year delivery.

GrainTrade