This week on the Chicago Stock Exchange, July corn futures fell by 7.1% (-10.2% for the month) on forecasts of increased stocks and sowing areas increase in the USA.
On Friday, the USDA will release reports on US grain stocks and acreage. Traders expect corn stocks to be estimated at 123.7 million tons. This is 19.6 million tons more than last year. Also corn sowing areas will reach 93.353 million acres, up from the USDA’s earlier estimate of 90 million acres.
Falling corn quotations in the USA reduced global demand prices, in particular in Ukraine. Traders stopped buying corn. In Ukraine purchasing prices with delivery to Black Sea ports fell to 170 $/t or 7,600-7,900 UAH/t.
In season 2023/24 (as of June 27th), Ukraine exported 29 million tons of corn against the USDA forecast of 26 million tons. Last year on this date 28.8 million tons of corn were exported. Therefore, after the adjustment of the balance for Ukraine in 2024/25, the initial stocks will be minimal.
The gradual decline in feed wheat prices is increasing the pressure on the prices of new crop corn, especially against the background of favourable weather for crops.