Corn prices drop on low demand

Amid the confrontation between the U.S. and Iran and the rapid rise in oil prices, March corn futures rose to USD 154.1 per ton on Jan. 3, but dropped to USD 150.87 per ton on Jan. 6 under the pressure of low demand, lower trading activity due to long weekends and the reduction of the number of contracts by speculative funds before the January report of the USDA, GrainTrade writes.

In Ukraine, after a long weekend, traders expect corn prices to rise to USD 178-180 per ton FOB but further growth will be limited by the prices of Black Sea corn in the EU, which is traded at USD 180-181 per ton FOB.

"Corn exports from the U.S. over the week fell to 550.9 thou. t, 9.84% lower from the corresponding period of the previous year and is significantly less than 1 mln t required to be exported every week to reach the projected USDA level of 47 mln t. So far only 8.6 mln t of corn have been sold since the start of the season," the message says.

Weather in Brazil and Argentina stimulates the development of corn crops. Rainfall in Brazil is forecast for the next weeks, while Argentina received precipitation last week and now the forecast is dry but not hot. The prospects for a good harvest are increasing the supply of South American corn.

India postponed the corn tender to January 14 but increased the procurement plan from 50 to 175 thou. t, which will be an additional price indicator.

As of Jan. 3, Ukraine exported 12.01 mln t of corn since the start of 2019/20, 2.84 mln t more y-o-y.

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