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In Chicago, corn fell again with increases in production and ending stocks.
Corn closed mixed, again, on the São Paulo Commodities Exchange (B3) with negotiations held in the physical market, according to information released by TF Agroeconomic. “The new drop of 0.52% in Chicago, offset by the rise of 0.74% in the dollar, did not stimulate exports (read flow) of corn in Brazil. As a result, there remains a large internal supply and pressure on prices. Domestic buyers feel comfortable with the great availability and decided to leave the market, putting pressure on physical market prices, which fell again”, he comments.
“In view of this, future prices closed down on the day and in the weekly comparison: the November/22 maturity closed at R$ 85.73, a drop of R$ 0.10 on the day and R$ 1.03 on the week (last 5 trading sessions) ; January/22 closed at R$ 83.84, down R$ 0.28 on the day and R$ 3.15 in the week and March/23 closed R$ 91.31, down R$ 0.13 on the day and R$ 3. 96 per week”, adds the consultancy.
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In Chicago, corn fell again with increases in production and ending stocks. “The December price closed at a further drop of 0.52% or $ 3.50/bushel, at $ 664.0. The price for March 2023, the beginning of our summer harvest, closed down 0.52 or $ 3.50/ bushel to $ 60.25”, he indicates. “Higher than expected production volume for the USA and a scenario of higher ending stocks put pressure on prices. USDA's monthly updates showed corn yields increased 0.4 bpa to 172.3 nationally. This was within the range of estimates, although the average trade guess was for a cut. In May, the trendline yield was 177 bpa and last year it was 176.7 bpa. This left production at 364.77 MT, compared to 364.11 MT in October estimates. Closing stocks were increased from 32.20 MT to 32.52 MT”, he concludes.Source: Leonardo Gottems | agrolink
