After two days of price losses, the CBoT maize futures can regain some of their strength by the hour. However, the price increase is limited by the rapid progress in field work in the USA and the poor demand for corn due to corona.
While crude oil prices have risen sharply recently, the demand for corn for the production of ethanol has probably deteriorated sustainably. So far, corn prices have followed crude oil prices because more than 1/3 of the US corn crop is used to produce the biofuel.
If the economic and economic lockdown in the United States and Europe is eased again, the demand for crude oil will increase again. According to the USDA, US farmers have ordered 51% of their planned corn areas by Sunday. Analysts had previously assumed 48%.
The COVID-19 pandemic has already put pressure on the whole grain market. Not only has ethanol production suffered, feed demand has also declined after some US slaughterhouses have been closed due to the high risk of infection with the virus.
Donald Trump said yesterday that the implementation of the “phase 1 deal”, in which China had committed to buy more US agricultural goods, is now of secondary importance.The president threatens China with new punitive tariffs because its government accuses the Chinese of growing the Corona virus. 
Source
Hansa Terminhandel GmbH
