Active harvesting of corn in the USA and increasing exports from Brazil are putting pressure on prices in Ukraine

Published Oct 22, 2024

Tridge summary

As of October 20, the USA has achieved its fastest corn harvest rate since 2012, with 65% completed, thanks to favorable weather. This has boosted exports by 97% in a week, reaching 5.8 million tons for 2024/25, the highest since 2018/19. Despite near-record crops, low prices are compelling US farmers to sell, intensifying competition with Brazil, which exported 3.9 million tons in October. The EU has increased corn imports by 6%, with significant contributions from Ukraine, the USA, and Brazil, leading to price pressures in the EU and Ukraine. Ukraine has harvested 13.2 million tons, exporting 3.54 million tons for 2024/25. Global corn prices are declining, as seen in South Korea's recent purchase from the US at a reduced price.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As of October 20, corn in the USA was harvested on 65% of the area (55% last year and 52% on average for 5 years), which is the best indicator since 2012. The forecasted dry and warm weather for the next 7-10 days will allow harvesting to be completed in record time and with minimal losses. Near-record soybean and corn crops will add to the problem of free space at elevators, where farmers are still storing leftover 2023 corn in anticipation of good prices. The majority of US farmers are forced to sell corn at low prices, which contributes to the increase in exports, which increased by 97% in a week to 999.8 thousand tons, and in general in 2024/25 MR reached 5.8 million tons, which is 30.6% ahead of last year's pace and is the best indicator since 2018/19 MR. During the week, December corn futures on the Chicago Stock Exchange traded at $160/t (-1.5% for the month, -26% for the year). According to AgRural data, as of October 17, 48% of the area was sown with first-harvest corn in ...

Source: Graintrade