China returns to buying Ukrainian corn

Chinese importers are believed to have purchased a substantial volume of animal feed corn from Ukraine in the past week, European traders said on Tuesday.

The precise volume was unclear. Some traders estimated at least 240,00 metric tons were bought in four 60,000 ton shipments, but with market talk that more than 10 shipments were purchased all for March/May loading.

“Ukrainian corn is looking the cheapest in the world and the low prices on offer are making the risk of sailings from Ukrainian ports and the Red Sea disruption worthwhile,” one trader said. “It is believed that shipment was booked in Chinese vessels via the Red Sea.”

The prices paid were estimated at between $227 to $230 a ton cost and freight (c&f) included to China, they said.

China is traditionally a large buyer of Ukrainian corn with purchasing continuing in recent months despite transport disruption caused by Russia’s exit from the U.N.-backed safe shipping corridor for Ukrainian grain exports last year.

“Ukrainian corn continues to be offered in large volumes in February with more shipments being offered for sale using Ukraine’s own shipping channel,” another trader said.

Tags: Ukraine, China, corn