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Corn demand falls in Brazil and Argentina

Posted by Rafael Moro

Demand is falling for corn in Brazil and Argentina and is concentrated in the United States and Ukraine, according to TF Agroecômica. "In the physical market, South American premiums for shipping 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 over the December futures, with bids falling 10 c / bu to 165 c / bu. And in Argentina, offers dropped 10 c / bu to 150 c / bu over December futures for December shipment with no cash offers. But in the US, signs of more purchases from China and other Asian countries prompted exporters to raise their January offerings by 10 c / bu to 155 c / bu over the March futures for Gulf shipping, and by 5 c / bu for boarding in the first half of February, ”he adds.

Continues after the form

While on PNW, offers for March were stable 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 for a total of 268,000 t of maize of world origin. The average price paid was $ 238.36 / t for cargo delivered between April 30th and May 13th. The Ukrainian corn market was a firmer touch on Friday, with offers for November loading from $ 233 / t HIPP and rising to $ 240 / t PIPP for corn with Chinese documents, ”he informs.

“In the meantime, official data showed that shipments of maize fell to 555,000 t in Ukraine, despite more active selling activity on the domestic market after prices fell late last week. This moved total corn exports to 2.8 million tons, 39% behind the pace of last year ”, he concludes.

*This text was translated from brazilian portuguese by a machine

Source: Agrolink