Corn prices in Ukraine fell to $217/t DAP port

The Ukrainian corn market last week showed a significant decline in prices. On DAP-port terms, prices sank to $217/t, while on FCA western border terms, prices dropped to €193/t. This is reported by White Brokers.

The main reason for the decline was a sharp loss of buyer activity. The starting point was Turkey, which at the beginning of the week remained one of the key buyers of Ukrainian corn, but later practically suspended purchases. Among the main reasons are a significant supply of cheaper Latin American corn on the world market, as well as an increase in sales volumes by Ukrainian farmers, who were actively selling the remains of the old harvest, brokers note.

Additional pressure was also created by traders who owned significant grain stocks and tried to accelerate their sale. The market is also negatively affected by the difficult global corn balance and the generally sufficient supply of grain on the global market.

At the end of the week, an additional negative factor was the news from Turkey: the authorities launched a large-scale investigation into the poultry meat production sector, within the framework of which external supervisory administrators were appointed for 13 large companies, and proceedings were opened against a number of managers on suspicion of violating competition law and manipulating prices.

Since the poultry sector is one of the largest consumers of corn in Turkey, the market perceived this news as an additional risk factor for future demand. Egypt, meanwhile, continues to actively purchase Latin American corn, which is currently successfully competing with Ukrainian products, White Brokers concluded.

Tags: Ukraine, corn, prices