The CBOT corn futures DEC-22 contract price was at 641.2 cents/56 bushel at the time of writing (8 th December), down 3.87% w-o-w. The corn market continued to be bearish this week, on the back of the Black Sea supply and generally low demand. However, adverse weather in Argentina remains a concern for the global supply. Additionally, in terms of market fundamentals, concerns continue about potential Chinese demand, amid the ongoing effects of COVID-19 restrictions on China’s economy, although some easing of restrictions now seems to be occurring.
In Ukraine, many farmers are facing problems with drying corn. “Given the power outages due to missile attacks on energy infrastructure, it is very difficult to predict how much corn can be removed per day and to have time to dry it. If there is no electricity, then the corn will deteriorate”, reported one Mintec source. As mentioned in previous reports, it is very expensive for farmers to dry corn (just drying costs around $50 per metric tonne). “Many farmers are waiting for the winter frost so that the corn is dried in the field, but if snow falls, they will no longer be able to remove it”, another source added.
In Argentina, weather forecasts continue to cause concerns. According to weather reports, there is some rain expected next week, although the forecasts are for dry weather again the week after. The Brazilian and Argentinian corn crops are entering the most yield-sensitive stage of their growth. Consequently, weather forecasts for the corn-growing areas will have an important impact on prices.
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