Corn flat as ample global supplies keep prices near lowest since 2020

Sep, 18, 2023 Posted by Gabriel Malheiros

Week 202338

Chicago corn futures held near their lowest since late 2020 on Monday as an upgrade to European production forecasts and supplies from the U.S. harvest capped prices.

The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.1% at $4.76-1/2 a bushel, as of 1058 GMT. Still, the market is trading close to its lowest levels since Dec. 2020.

Summer rain has benefited maize (corn) crops in much of the European Union, while the U.S. government raised its corn crop estimate last week.

With huge shipments from Brazil reducing overseas demand for U.S. corn, analysts believe U.S. stocks could next year be near their highest in a decade.

Meanwhile, analyst APK-Inform has increased the export forecast for Ukraine for the new 2023/24 season to 19 million metric tons from the previous outlook of 18 million.

Chicago corn has fallen 30% this year.

Speculators also increased their net short position in CBOT wheat and cut their net long position in soybeans in the week ended Sept. 12, the regulatory data showed.

In the wheat market, hefty reduced harvest potential in Australia and Argentina due to recent dry weather is expected to support prices.

Weak crushing demand comes as U.S. exports struggle to compete with record Brazilian shipments. CBOT soybean prices are down around 12% this year.

Source: Nasdaq with Reuters information

To read the original news report, check:

Sharing is caring!

Leave a Reply

Your email address will not be published. Required fields are marked *