When you pace ahead in 2022, the period between July and August will be an important time for corn crop development. On July 17th 2022, more than 50% of the corn across the USA was excellent.
However, the overall rating was a percentage below than what it was in the earlier year. Feel free to check out a new maize market report by IndexBox to know more about the condition of the maize market. Besides, as you go through this article, we will cover more about the market trends prevalent in July and August 2022.
What are the maize price trends worldwide and in the regions across the USA?
As of July 17th 2022, more than 60% of the corn will be observed to be excellent. But, the condition is a bit different because people will observe a slight percentage drop compared to the last year’s rating. During that day, the USDA presented that the corn acreage would increase by 400,000 acres.
This is equivalent to a holding yield of as much as 177 bushels for every acre. Moreover, the US corn production was on the rise with 45 million bushels as per the prediction in June. Beyond this point, the USDA increased the ending stocks to around 1 billion bushels. Additionally, people didn’t observe any difference regarding the production in Argentina and Brazil.
Now, let’s quickly go through the condition of the corn market on July 22nd. As per the recent observation, it was later found that the corn futures were relatively lower than in the last report. But, during September 2022, the corn futures will be at $ 5.64 for every bushel. On the other hand, the corn futures for December 2022 was $5.64.
These figures are quite lower than those when people compared the futures with the ones for soybean and wheat. Apart from this point, the oil futures on July 2022 were $94.70 less than the nearby futures as per the market report. Moreover, the average price of US ethanol was $2.62 for every gallon. People observed this price on July 22nd 2022.
What is the trend in regions of Ontario?
When analysts considered the data for the past few months of 2022, they saw a decrease in wheat prices. This fact was due to the geopolitical scenario across Ukraine and Russia. But, in such a case, individuals saw a decline in corn prices. The price is now equal to $3 for every bushel.
The Canadian dollar also helped maintain the price with lower future levels. With this in mind, the Ontario cash prices will depend on corn crop cultivation and future climatic conditions. Unfortunately, the dry weather will negatively affect the crop across regions in Ontario. While people observed rainfall in certain areas, some are still arid. However, to perceive a better situation in August, there will be a need for widespread rain.
As far as the old corn basis levels are concerned, these are between $1.65 and $2.00. The analysts will observe such figures across September 2022 when considering the corn futures. But, the new basis will later vary from $1.30 to $1.80 over the corn futures for December 2022.
Conversely, the replacement price for corn in the US was $8.12 for every bushel. If you wish to go through the grain prices across Ontario, you can go through the marketing section of a commodity report.
Summary
There’s a vast difference between the current trends of the maize market in the USA and Ontario. While the USDA has observed an increase in corn acreage, more than 60% of the crop will be excellent.
But, in September 2022, the corn futures will equal $5.64 for every bushel. On the contrary, wheat prices have influenced corn prices to a great extent. Currently, the corn price is quite low, and it is $3 for every bushel.
Unfortunately, the dry climatic conditions will impact the crop considerably in Ontario. However, the situation will improve if there is rainfall across vast landscapes. The corn basis levels will also be around $2.00 when considering the corn futures for September 2022.