Delayed harvest, logistical and drying concerns favour corn prices: Agritel
Corn prices in the European market continue to be supported by the delay in harvesting, particularly with logistical and drying difficulties, the Agritel consultancy reports.
Analysts mark that there was little movement in cereals yesterday [4 Nov. – ed.] as the market seeks to consolidate after testing all-time highs in euro this week. In dollar terms the market still has an upside potential based on historical prices.
The rebound in Covid-19 cases around the world is worrying traders. Indeed, the economic activity could again be slowed down in the event of a new outbreak, Agritel analysts presume.
"Chicago traded lower on Thursday [4 Nov. – ed.] with expectations of an upward revision in US soybean and corn production in the USDA report due next Tuesday," the report reads.
It is noted that in pre-opening prices are picking up a bit, especially in wheat. Wheat weekly export sales have been reported at 400,100 t, corn at 1.224 mln t and soybeans at 1.864 mln t.
In the Black Sea region, water deficit is still a concern for autumn planting in both Ukraine and Russia.
Since the start of 2021/22, grain export shipment from Ukraine has made up 19.4 mln t, 17.3% up YoY.
As a reminder, the prices for Ukrainian corn and wheat were rising for five consequtive weeks: wheat added 8 USD/t, corn 7 USD/t.