Corn prices in the Black Sea ports continue to rise, but they are restrained by the fall in global quotations

Against the background of increased movement of ships to the Black Sea ports and a decrease in freight rates by $5-10/t, the purchase prices for corn this week increased by $5-10/t to $130-135/t or UAH 5,200-5,280/t with delivery to Black Sea ports and $140-145/t with delivery to Danube ports.

Despite the high yield and low humidity of corn, farmers hold back sales in anticipation of higher prices.

In Ukraine, on October 26, 13.32 million tons of corn were harvested from 1.95 million hectares or 48% of the area with a yield of 6.84 tons/ha, which allows us to hope for a harvest in the range of 29-30 million tons.

However, export rates remain low, and during July-October only 3.8 million tons of corn were shipped compared to 7.14 million tons last year.

World prices continue to fall under the pressure of active harvesting and a good harvest in the US and an acceleration of planting in Brazil.

December corn futures on the exchange in Chicago last week fell by 3.8%, and since Monday another 0.7% to $187/t (-2.5% for the month, -30% for the year).

November corn futures on the Paris exchange last week fell 4% to €198.5/t or $210.3/t (-4% for the month, -55% for the year).

In the US, 71% of corn was threshed as of October 30 (66% 5-year average), and thanks to better-than-expected yields, production forecasts have been raised again.

According to SAFRAS&Mercado monitoring data, in Brazil, despite the dry weather in the center of the country, as of October 27, 72.4% of the planned 3.9 million hectares were sown with corn of the first harvest (70.1% last year and 67% on average over 5 years). At the same time, the export of corn in October reached a record for this month of 8.5 million tons, while in August it amounted to 9.3 million tons, and in September – 6.6 million tons. For comparison, during the period from September 1 to October 26, the United States exported 4 .95 million tons of corn (4.2 million tons for this period last year).

Tags: corn, prices