Corn: crude oil threatens forced shutdown
April 27, 2020 at 2:53 PM ,
Der AUDITOR
In Chicago, corn was trading at USD 3.12 per bushel at noon, 2.2% lower than yesterday. In Paris, the front date was held at EUR 166.25 per metric tonne. The US data remained extremely weak. Bad news came from the ethanol and slaughter sector. ADM will temporarily suspend ethanol production at corn dry mills in Cedar Rapids, Iowa, Columbus and Nebraska due to lower gasoline demand; the talk is of 120 days. US ethanol stocks have reached a record 27.7 million barrels, a good 22% higher than last year. Tyson Foods announced that production at its beef plant in Pasco, Washington, would be stopped for the time being. Export sales of 589,395 metric tonnes of US corn to Mexico were unable to stop the decline in prices in the USA. The crude oil market recorded price losses of 12.8% for WTI in the morning and 5.1% for Brent last Friday. Goldman Sachs analysts believe that a further increase in the recently approved production cuts is inevitable. If OPEC does not cut crude oil production, an additional 20% of global oil production, or 20 million barrels per day, will have to be forcibly shut down in three weeks, they said.
|
Corn, daily price development |
||
|
Parity |
EUR/mt |
Diff. EUR/mt |
|
Bordeaux, FOB |
160.00 |
0.00 |
|
Netherlands, CIF |
185.00 |
-2.00 |
|
Oldenburg, DDP |
190.00 |
0.00 |
|
Brake, FOT |
182.00 |
0.00 |
|
Lower Rhine Region, DDP |
184.00 |
0.00 |
|
Upper Rhine Region, FOB |
182.00 |
0.00 |
|
Trade sources |
||
France's corn sowing is 52 % advanced
China has signalled that it will increase its state corn stocks by 20 million metric tonnes, which would have to be covered by imports. From Beijing it was said that they would begin to fulfill the Phase 1 agreement with the USA to build up reserves to protect themselves against corona-related disturbances, the news service Reuters reported. In France, trading started into the new week with unchanged price levels. Corn sowing is progressing at record speed due to the dry and warm weather. According to French trading, 52% of the corn sowing in France was completed. Coceral expects EU corn production to reach almost 65.5 million metric tonnes, compared with almost 61.0 million metric tonnes last year. The Ukrainian government has announced that it will limit corn exports to 29.3 million metric tonnes. A decision on this is to be made today. If that were to happen, only 3 million metric tonnes of corn exports would be available for the rest of the season. Due to dynamic exports, Ukrainian stocks have fallen to their lowest level in four years, at 7.7 million tonnes. The country recorded a record export rate of 21.5 million mt, compared to 19.9 million metric tonnes last year. European corn imports from the Black Sea Region will decrease.
View related articles
