WORLD MAIZE PRICES REMAIN UNDER PRESSURE...

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03 March 2020

World maize prices remain under pressure...

World maize prices should remain under pressure in the upcoming months. Maize areas should increase or have increased both in the main exporting countries, and in the EU. Such is already the case in South America – in Argentina and Brazil, which should both see high production levels this year, if no major weather accidents occur. The same outlook is certain for the United States, which expects a rebound of areas covered by crop insurance as a result of bad weather in the spring of 2019. Lastly, the EU – and the Black Sea region (Ukraine and Russia) should witness area increases, especially because of last autumn’s disappointing plantings.
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While market fundamentals tend to trend downwards, world maize use remains dynamic and should surpass 2019/20 world production for the third consecutive season. There are other factors that may also render prices more volatile. The coronavirus epidemic in China fuels fears of a slowdown in the global increase, while the U.S.-China trade agreement providing for $40 billion-worth of agricultural commodity sales to China this year has yet to be put in practice.

Maiz'info Newsletter - March.2020

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