Thursday , August 18 2022

Corn prices could increase due to flooding in the United States: Linea Directa


United States.- Flooding in the US Midwest region caused severe damage to grain regions such as Iowa and Nebraska, so horn lists are bound to affect the price in international markets.

These American regions are called "corn belt", which was severely affected by the storm registered in previous days.

There is data that shows that corn planting, for this 2019-2020 cycle in the US, should begin in the next three weeks, however, the floods ruined the inventories in the states. who first occupied the third in the total production of the country with more than 63 million tons and 45 million respectively in the previous cycle.

But at present these states are under the uncontrolled channel water of the Missouri River, which is still fostered by thaw and higher rainfall than is necessary, so before that scenario breaks down. until May, according to experts from the US National Oceanic Administration and Atmospheric.

The grain market began to take acreage of corn and this led to an increase in cereal prices on the Chicago Stock Exchange since March 23.

At their February Annual Forum, technicians from the US Department of Agriculture (USDA) predicted a 3.2 per cent increase in the plan to plant corn for the new campaign, 36, 06 to 37.23 million hectares.

But now the operators believe it will be impossible to achieve that objective and reflect on a barely rising surface beyond the 36.40 million hectares, even to cover; In this area it would be necessary that the current water crisis would not spread, as they predicted the experts, until May.

We are waiting for the official estimate of the possibility of planting in the United States. and there the market will contain more elements for the planned area analysis for the corn and on the chance that the predicted soybean figure may receive additional hectares.

Another factor that influenced the increase in corn was the fact that Cofco, one of the grain buying companies owned by the state in China, had acquired US grain, however. was an official calculation than a volume calculation.

Finally, it should be remembered that large investment funds have an important site sold in the Chicago corn market, so that news such as flooding or Chinese purchases could "invite" speculators to review their "bets" and lead them in their progress.

In terms of the local market, the day in the corn plaza was very active in the field of Rosario Stock Exchange, offered exporters up to 5,650 pesos per tonne of cereals open for immediate delivery, 50 more pesos that day before yesterday, for the goods for the emissions between April and May, those interested offer 140 dollars, 2 more than in the previous day.

"Once again, corn was left with the lead role of the wheel, due to the larger agreements reached between the parties," one operator, who calculated the amount of marketed marketed (available and deferred deliveries) on a "base of 200,000 tonnes", above The nearly 100,000 are marketed on Wednesday.

For Bahía Blanca and Necochea ports, the exporters' proposals remained stable at 148 and $ 145 per tonne, respectively.

The Buenos Aires Season Market slate copied the external trend and reflected an increase of 2 dollars and 2.40 on April and July contracts, which resulted in their adaptations to 140 and 135 dollars.

In terms of soybeans, it was quoted at 9,300 for Rosario, with an increase of 100 pesos, while there were no open offers for wheat available, compared to 170 dollars a day before yesterday.

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