Corn Price in Ukraine
Prices for agricultural crops
Analytical Reports
The price of corn today
Ukraine is one of the world’s leading exporters of agricultural crops, including feed grains. The price of corn today depends not only on demand, but also on other factors. How is the value of amber grain formed? We will talk about this below.
The situation on the world corn market
In recent decades, maize has turned from an ordinary agricultural crop into a real engine for the development of the country’s agro-industrial complex. A similar trend is observed not only in Ukraine, but throughout the world.
Corn is confidently becoming the leading grain crop, surpassing wheat, barley, soybeans and rapeseed in terms of sales. The main reasons for this phenomenon are high yield and wide distribution in various industries. Yes, corn seeds are used for food, fodder and technical purposes. That is why the export of corn from Ukraine is increasing.
Among the countries that are the largest producers of maize are the USA, China, Brazil, and Argentina. Every year, these and other countries make maximum efforts to increase the corn harvest. To achieve better results, it is possible to increase the sown areas and improve the quality of products.
How does the price of corn change in Ukraine and the world?
Maize prices are constantly fluctuating, which is why experts do not undertake to make an accurate forecast about the indicators. For example, even with an increase in planted areas and modernization of production, the actual corn harvest may turn out to be much lower than planned due to unfavorable weather conditions.
Peculiarities of the weather in different countries affect the general situation in the global agricultural market. Numerous offers of major players balance each other and allow today’s buyers to choose the optimal export option for themselves, taking into account the characteristics of corn and its price.
The situation on the domestic market in Ukraine is also rather unstable. It is somehow impossible to predict the yield and export of corn for the next year due to fluctuations in the exchange rate and changes in the weather. In the past, there were both record harvests that reached unpredictable numbers, and unprofitable minimums. On average, during the past decade, the price of corn in Ukraine ranged from $130 to $300 per ton.
To date, the cost of this grain crop does not change seriously. However, taking into account the geopolitical situation, it is necessary to take care of additional ways of exporting corn.
How to sell corn from Ukraine at a good price?
The indisputable advantages of Ukraine as an agrarian country are its optimal geographical location and climatic conditions suitable for growing corn. This makes corn production one of the key elements of the domestic agro-industrial complex.
There are several most common ways to export corn:
- Delivery of goods directly abroad to the buyer. In this case, sellers should prepare for possible problems in the process of choosing a buyer with the best offer, high competition between different farms, the need for independent processing of documents, force majeure situations during the sale and transportation of corn from Ukraine. Preventing all potential difficulties is quite possible, but it will take a lot of time, effort and money.
- Sale of corn wholesale from the field to intermediary companies. This option is not among the most common and economically beneficial. As a rule, today producers sell corn directly from the field under compulsion, in the absence of their own elevators and the possibility to negotiate temporary storage with other large market participants. Another possible reason is the urgent need for working capital.
- Transfer of corn for sale to a trader in a Black Sea port. Professional trading in the agricultural sector is the priority choice of many producers. Cooperation with specialized local organizations and international groups of companies allows each manufacturer to choose the most attractive option for himself.
What affects the price of corn in Ukraine?
Corn is a popular agricultural crop both in Ukraine and abroad. A large number of cultivated varieties are used for domestic needs and are sent for export.
Today, the price of corn is affected by numerous factors:
- demand for corn on the global market;
- the area sown with corn in the main exporting countries;
- climatic and weather conditions that determine grain yield and quality;
- exchange rate, cost of fuel and lubricants, equipment maintenance, etc.;
- own characteristics of corn (its price is mainly influenced by the variety, seed integrity, humidity).
The cost of corn depends on the period of the growing cycle. The minimum price is observed during harvest. In the future, it gradually increases due to the addition of additional costs, in particular grain storage. The peak rise in corn prices is noted at the end of autumn – the beginning of winter, and then at the end of winter – at the beginning of spring.
If we analyze the data of past years, the price of corn in Ukraine is steadily increasing. But we must remember about a possible sharp drop in prices, which is possible in the event of a record harvest.
One of the simple and convenient ways to track fluctuations in the grain market today are specialized online services. They allow users to select a region or city, find out the price of corn and contacts, specify other parameters of interest.
How do corn producers work with traders?
Selling corn is a specific topic that requires knowledge of a large number of financial and legal nuances. It is quite difficult to deal with them on your own at the moment. Cooperation with trading companies is the best solution for many entrepreneurs.
Why should you work with professionals? Partner organizations provide assistance and support in solving many routine issues:
- collecting documentation for making a declaration;
- search for buyers in Ukraine and abroad for export;
- checking the correctness of contractual documents;
- concluding agreements with the owners of southern port terminals;
- registration of delivery with resolution of customs issues, etc.
The conclusion of agreements with foreign buyers may be accompanied by unforeseen situations. In order not to become a victim of fraudsters, it is important to have a good understanding of all the intricacies of the procedure for selling and transporting corn. In particular, it is important to choose the port, fix the terms of payment.
Intermediaries with experience in the field and organization of corn export are able to guarantee the maximum safety of the producer and not to endanger his products (the volume of which can be calculated in millions of tons), funds and reputation. Professionals will also help you choose the best time to sell corn at the best price to get the most profit.