Fine corn prices rose sharply and the fluctuation
Before the rise of corn prices strong world corn domestic market there are also rapid changes in price and size of transactions.
US corn prices have recovered strongly in the last week of June thanks to support from the adverse information about corn production in the US. Within a week, the price of corn has risen to more than 20 US dollars / ton - the increase is considered to be mutated in many years.
World corn price movements
In a report published on June 30-6 of the USDA, corn planted area of the US in 2015-2016 crop year is estimated to decrease by 2% over the previous year, reaching 88.9 million acres - the lowest level since 2010.
The price of corn on the Chicago (USA) which is being supported by the adverse weather in the US has continued to have a very strong rally as rising to US $ 12 / ton (equivalent to an increase of 7% ) from the previous session and climbed to the highest level within the past one year.
In addition to the decline in the cultivated area, the US corn inventories lower than market expectations also contributed to increased corn prices. According to USDA, US corn inventories as of the date 1-6-2015 reached 4.45 million bushels (1 bushel = 25.4 kg), although up 15% compared to the same period last year but lower expectations of traders (4.55 million bushels).
The rise of corn prices in the last session in June helped average corn price in June increased slightly by 2 dollars / ton from the previous month in mid-June whether US corn prices fell to the lowest since from March 10-2014. Compared to lows of US $ 137 / t is set at the price of US corn dated 15-6-2015 ended the session on 30-6 shot up to nearly 30 US dollars / ton.
Impact on Vietnam market
Within the past week, US corn prices have increased by more than 20 US dollars / ton - the increase can be considered a surge in corn prices go down context continuity in the first months of the year, surpassing all expectations traders predict. In the first trading day this week, when world maize prices continued to increase several dollars per day, the price almost immediately corn in the domestic market are also pushing Vietnam increased significantly, especially in the context corn ship integration of commercial units on the port no more and enter the ship's corn production units being late than expected.
The price of corn in bulk delivery vehicles at the port of Hai Phong on this week was revised up to $ 5,200 / kg, up from 5,100 VND / kg last week. In the port of Vung Tau, also adjusted prices rose to 5,100 VND / kg from 4900-5000 VND / kg. However, after strong price gains of world corn market today 30-6, most of the commercial unit in Vietnam to cease operations temporarily offering to purchase or sell, waiting for the next evolution of the market . There are reports that domestic corn prices may be adjusted sharply to 5400-5500 dong / kg for imported maize price despite the fact the port is only about US $ 210 / ton (equivalent to approximately VND5,000 / kg) in order to cover losses for imported consignments of the previous month.
With the shipment of corn to ports in July and August, the price will be quite low, fluctuating around the threshold of 190 US dollars / tonne CNF, equivalent to about 4,500 VND / kg. However, no more units to be acquired at the price previously presented by traders rather hesitant when the offer or bid for the contract in July, August due to concerns over supply in the domestic market and the further depreciation of the world market.
Prospects supply imported and domestic corn
Statistics from the General Administration of Customs show that in the first six months of 2015, Vietnam's imports of corn is estimated at 3.2 million tonnes, up 800,000 tonnes (equivalent to 33%) over the same period last year. From July onwards until May 10, Vietnam's imports of corn may lower import cycle like the previous years, so this period coincides with the domestic corn harvest, the plants will focused on domestic corn purchases. In July, August and May 9-2015, based on information on the ship is expected to dock Cai Lan, Vung Tau with information on the ship's loading at the port of South America, the amount of corn in Vietnam Male Per month on approximately 200000-300000 tonnes.
However, the quantity of goods in July, it mainly focuses on the second half of July due to congestion at the port bridge in South America in May caused the ship to Vietnam later than expected. Notably, in the total amount of corn expected for the port in July-September, the volume of shares traded relatively small proportion, mainly customers of the production unit. Therefore, the supply of corn from the commercial units in July the market will not more.
For domestic corn supply, as usual annual harvest, from late July corn harvest began in some areas of Peace and then from the end of August will be harvested in Son La, Lai Chau North, Gia Lai and Dak Lak in the Central. However, the general perception of traders, domestic corn harvest will come later this year from half a month to a month compared with the previous year due to dry weather, less rain, slow growth corn.
Not only to later than every year, while domestic corn supplies are forecast to decline sharply due to the planted area and yields narrowed reduced by drought. Statistics from the Ministry of Agriculture and Rural Development said that by the end of the day 15-6-2015, corn planted area reached 771,500 hectares nationwide, down 5.3% from the same period last year.
