North Africa and East Asia increased the interest in Ukrainian corn — APK-Inform

Source

APK-Inform

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In the current season, Ukraine significantly increased the exports of corn. According to APK-Inform figures, for 5 months of 2019/20 MY Ukraine shipped 17.5 mln tonnes of the grain on foreign markets, up 27% compared with the previous season (14.8 mln tonnes). The European Union became one of the main regions-importers of the Ukrainian grain, and purchased nearly 7.1 mln tonnes of the grain (down 23% compared with the previous MY), as well as North Africa — 3.9 mln tonnes (up 74%), and East Asia — nearly 3.5 mln tonnes (up 93%). The reporting regions covered nearly 83% of all exported volumes of corn from Ukraine.

 

 

In October-February of 2019/20 MY, North African countries significantly increased the imports of the Ukrainian grain, due to increasing of purchases by Egypt by 58%, or to 2.4 mln tonnes, Algeria — up 6.1 times to 600 thsd tonnes, and Libya — up 22%, up to 438.8 thsd tonnes.

Also, it is worth noting that for the first 5 months of the current MY the increase of corn supplies from Ukraine to East Asian countries developed, in terms of 11% growth of the imports of the Ukrainian grain by China, and the increased purchases by South Korea, which imported 1.5 mln tonnes, against 0.2 mln tonnes in the same period of 2018/19 MY.

Thus, in the current season the significant increase of the imports of Ukrainian corn by countries of North Africa and East Asia was somewhat compensated by the reduction in purchases by the EU countries. Unfortunately, the panic caused by the spread of the coronavirus epidemic in the world, also made some adjustments to the foreign trade of Ukraine. Thus, in February 2020 the export volumes of corn decreased by 7%, compared with the previous season. As for the export potential of corn in the current season, according to APK-Inform estimations the figures can reach 28.5 mln tonnes, and in October-February period Ukraine already realized the plan by 61%, said the analyst, Viktoria Rozhko.

However, if the downward trend in grain shipments on foreign market continues developing, the export estimations will reduce, which will increase the ending stocks, and put pressure on the prices.

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