New-crop soybean and corn prices in Chicago rose 4% on the day

In the USA, on June 19, the newly introduced Day of Emancipation of Slaves (Juneteenth) was celebrated, dedicated to the complete abolition of slavery in the country after the Civil War. Exchanges were working yesterday, but government agencies were not, because the weekly report on the harvest in the USA will be released today. On Monday, on news about the lack of precipitation in the US corn belt, speculators actively bought futures for soybeans and corn of the new crop, which led to a price increase of 3.8-4%.

On the Chicago stock exchange, futures rose in price yesterday:

• July soybean futures – by 2.7% to $538.8/t,
• November soybean futures – by 3.8% to $493.2/t (+8.3% for the week),
• July corn futures – by 2.7% to $252.1/t,
• November corn futures – up 4% to $235.2/t (+9% for the week), which is above the psychological level of $6/bushel.

Quotations for soybeans and corn of the new harvest reached the level of the prices of the old harvest during the week. This shows that traders do not expect a significant harvest and a decrease in prices in the new season. According to forecasts, in the next 7 days, hot weather will prevail in the Midwest of the USA without significant precipitation.

In Ukraine, 4 million hectares were sown with corn (4.405 million hectares in 2022 and 5.14 million hectares in 2021), which slightly exceeds the plan. Despite the lack of precipitation in May and June, the crops are in good condition, as temperatures remain in the range of 23-25 ^o C.

Thanks to the slight activation of the grain corridor, the export of corn from Ukraine for June 1-17 amounted to 1.3 million tons of corn (2 million tons in May), and in total since the beginning of the season – 28.18 million tons (22.9 million tons last year). although the USDA estimated it at 27 million tons.

Demand prices for corn deliveries to the Danube ports remain at $173-175/t, but demand for deliveries to the Black Sea ports has increased, but prices there are only $160-165/t.

The increase in world prices will support the prices of fodder corn and barley in Ukraine in the near future, but we should not expect a significant increase in prices.

Tags: corn, prices, soybean, USA, Ukraine