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Corn records moderate drop in Chicago this morning

Posted by Rafael Moro

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At 8:29 am (Brasília time) this Tuesday (29), the May corn contract on the Chicago Stock Exchange (CBOT) registered a moderate drop of 5.00 points and 0.67%, traded at US$ 743.50 cents. /bushel; however, the monthly accrual is 7.75% so far.

The July month contracted 5.00 points and 0.68%, at US$ 725.50/bushel cents – monthly appreciation of 7.27%. The day before (28), the cereal spot devalued 0.73%. Pressure from the expressive drop in WTI oil on the New York Commodity Exchange (Nymex), a factor that reduces the competitiveness of corn-based ethanol.

This morning, the market reverberates the peace negotiations between Russia and Ukraine, which is the 4th largest producer of grain in the world. In addition, the lockdown established by the Chinese government in Shanghai – the financial center of the Asian country – also affects prices. China has been facing the biggest outbreak of covid-19 since the beginning of the pandemic.

However, the loss is limited by the shipments report for the week ended March 24, released yesterday by the United States Department of Agriculture (USDA). According to the agency, the US exported 1.607 million tons of corn in the period, a volume 2.5% higher than the weekly average to reach the estimated total for the 2021/22 crop. Exporters reported to the USDA a sale of 127,920 tons of corn to an undisclosed destination.

Of this amount, 77,120 thousand t will be shipped during the 2021/22 business year and 50,800 thousand t in 2022/23. On Thursday (31), the USDA will release new figures on the planted area in the North American country.

Information on the behavior of the global financial market, the war in Eastern Europe, the weather in South America and international demand are on the market's radar.

This text was translated by machine from Brazilian Portuguese.