Drought in Ukraine helps reduce the cost of corn – experts




The long absence of precipitation in Ukraine contributes to the active pace of the harvesting campaign and the high quality of corn. This was noted during the weekly briefing on September 26 by experts of the analytical center of the agricultural cooperative “PUSK”, created within the framework of the Ukrainian Agrarian Council, the press service of the UAC reported.

“The forecast model does not show precipitation in Ukraine in the near future. Therefore, the moisture content of corn grain will remain low, on average 17-20%, while last season this indicator was 30-35%. This will help reduce the cost of corn grain, as one drying cycle will be enough for the harvested crop,” analysts said.

At the same time, they stated that the shelling of the ports of Odesa and the Danube hinders the export of corn. Herewith, Ukrainian grain is currently in demand from China, exclusively on the CIF basis, with delivery in October-December at a conditional price of $250/t.

“Currently, on all bases, weekly price tags for Ukrainian corn lose 3-5 USD/t. The grain supply is high, but logistical problems are and will continue to be a factor of the price decline for corn, especially as the harvesting campaign unfolds. The next week, the price level for 1 tonne of corn can be expected as follows: CPT river ports – 140-150 USD/t, DAP border – 145-155 USD/t”, experts forecast.