Demand is falling for corn in Brazil and Argentina and concentrating in the United States and Ukraine, according to TF Agroeconomic. “In the physical market, South American premiums for shipment in the current month continued to fall amid weak demand,” he comments.
“In Brazil, this drop implied a reduction of 7 c/bu for December offers, which reached 188 c/bu on December futures, with bids falling 10 c/bu to 165 c/bu. And in Argentina offers fell 10 c/bu to 150 c/bu on December futures for December shipment with no spot offers. But in the US, signs of more buying from China and other Asian countries prompted exporters to raise January offers by 10 c/bu to 155 c/bu over March futures for Gulf shipments, and by 5 c/bu for boarding in the first half of February”, he adds.
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While in the PNW, March offers were flat at 175 c/bu over March futures with fewer low offers to test these levels. More private purchases started the day in Asia with the purchase of MFG and FLC from South Korea totaling 268,000 tonnes of world-sourced corn. The average price paid was US$ 238.36/t with cargoes delivered between April 30th and May 13th. The Ukrainian corn market was a touch firmer on Friday, with offers for November loading starting at US$ 233/t HIPP and rising to US$ 240/t PIPP for corn with Chinese documents,” it reports.
“Meanwhile, official data showed that corn shipments fell to 555,000 t in Ukraine, despite more active sales activity in the domestic market after prices fell late last week. This moved total corn exports to 2.8 million tons, 39% behind last year's pace”, he concludes.
Source: agrolink
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