Reserved farmers selling jeopardizes the export potential of Ukrainian corn

Source

APK-Inform

2216

According to APK-Inform, since the beginning of the current week, the export prices of Ukrainian old-crop corn continue growing.

“Farmers preferred to hold the sales as they considered the current prices to be too low. This led to price growth and now the offer prices of Ukrainian corn are significantly higher than the prices of US corn (which in its turn lost its competitiveness compared to Argentinian and Brazilian corn). Therefore, the demand for Ukrainian corn from importers is low”, - commented the Head of local markets of APK-Inform, Anna Tanskaya.

Despite the low demand, the prices of Ukrainian old-crop corn reached 181-186 USD/t FOB (late June-July delivery), up 4-6 USD/t since the start of June.

“Competition is getting stronger as Brazil is increasing corn export due to the harvest progress. Moreover, the forecasts of high corn production in Ukraine and the world intensify the competition on the market. Additionally, the deterioration of conditions of corn in USA due to the dry weather as well as the appreciation of crude oil support prices”, - the expert summarized.

 

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