Corn prices move down ahead of May USDA report: Agritel
The week has started on a bearish mood both in cereals and oilseeds, the Agritel consultancy writes.
"In Chicago, profit takings following last week’s rally and ahead of the USDA’s monthly report tomorrow pushed prices lower," the report reads.
Analysts mark that the new announcement of exceptional sales for 1.02 mln t of corn to China after Friday's sales, which also exceeded 1 mln t, did not manage to limit the downward movement. Corn is now testing its first support zones.
"On Monday, 11 May, corn prices posted a slight decline for the first time after a long rise in anticipation of USDA report updates and amid high planting rates and improved weather conditions in major growing regions in the US," commented Barva Invest analysts.
July corn futures on the CME fell by 0.21 USD/bushel, while the June contract for Black Sea corn fell by 4.75 USD/t.
Corn prices are still supported by negative weather expectations for the second-crop corn in Brazil. Analysts noted that the pace of trading activity in the global market remains high. South Korea announced plans to buy 69 thou. t of corn, while China is actively seeking the purchase of US grain of the new crop.
"The Ukrainian market mirrored the performance in Chicago and prices rose to 288 USD/t for the old crop on Friday," analysts add.
As of May 7, corn export from Ukraine came to 19.36 mln t, 28% lower YoY.