Market update - Corn Oil

The USA market prices for Corn Oil have been rising a lot due to the increase in corn prices.

Normally during this period of the year, around 90% of all corn should have been planted for the next crop, however because of the rains and floods, only 49% has been planted. This is the worst result in 35 years.

Specialists believe that the price of corn oil can go up even more for the next days as the weather forecast shows ongoing constant rains. Local buyers of corn oil and other corn byproducts have already secured volume for 2020 shipments, trying to avoid future price variations.

n Brazil and Argentina, the prices of Corn Oil have not had much impacts yet for nearby shipments, but both origins are already increasing around USD 30/MT for future shipments. Even with the corn from Brazilian 'safrinha' crop, which may pressure the prices of corn a little, it seems like the oil market will follow USA oil prices. Also should keep an eye on Brazilian increasing corn exports and meat exports.

Photo: Melinda Rodrigues

Author: Melinda Rodrigues - Soft Oils Unit
Posted by: Marina Carvejani

Source: Aboissa Commodity Brokers