European market shows increased interest in Ukrainian corn

Ukrainian corn exports continue to show positive dynamics amid stable demand from European countries and possible weather risks in South America. November exports exceeded 2.5 mln tons, and 2.1 mln tons have already been contracted for December, and this figure has the potential to grow. This was reported by analysts of the agricultural cooperative PUSK, established within the VAR.

“December traditionally becomes the month of large volumes of corn exports from Ukraine. We are seeing strong demand from the European Union, which is supported by lower freight rates. This allows Ukrainian traders to offer competitive prices and increase the volumes of supplies. In December, we can expect exports of at least 2.2-2.3 million tons. Such activity in the market contributes to the gradual increase in corn prices on CPT terms, which are already approaching $200 per ton,” analysts of the PUSK cooperative note.

According to analysts, prices may rise further in December. One of the drivers of price fluctuations is the situation with precipitation in South America.

“The demand for corn is now supported not only by low freight rates, but also by the desire of importers to fix stocks amid weather risks. Uneven precipitation in the regions of South America where corn planting will start in December could significantly affect the grain yield. If the situation with moisture supply in these countries does not improve in December and January, this will lead to a downward revision of corn yield forecasts, which, in turn, may increase prices on the global market. Forecasts for December-January indicate a likely increase in prices to $205-210 per ton. And this is not the limit. At the same time, even without the influence of South America, prices for Ukrainian corn tend to grow by $2-3 per week in the near future,” the PUSK added.

Tags: Ukraine, corn, EU