China's voluble corn purchase sharply rebounded prices in Chicago — Agritel
A sharp rebound of prices was observed yesterday January 26 in Chicago after the technical correction at the end of last week, the Agritel consultancy reports.
"The reason for this is the export activity with an exceptional sale of nearly 1.36 mln t of corn to China. The USDA will necessarily have to revise its export estimates upwards in its next report and consequently revise its ending stock downwards. In this context, the balance sheets are stretched out in corn, which is also supporting wheat," the report reads.
Another factor supporting the market is the demand for American ethanol, which is again coming from China.
"About soybeans, it is paradoxically the rains in Brazil that are now supporting prices, because they arrive during the harvest time, delaying the progress of the harvest," Agritel analysts mark.
Soybean harvesting projects in Brazil are estimated by AG Rural(AG Rural provides market information/analysis and ag marketing consulting services for farmers and ag companies in 12 Brazilian states) at only 0.7% to date, against 4.2% last year to date.
Yesterday, the European market, which is returning to its fundamentals after a technical correction at the end of last week, also experienced a sharp rebound according to Agritel analysts.
Previously reported that corn export cap in Ukraine was set at 24 mln t for the 2020/21 marketing season.
