Growth of demand and prices stimulates farmers to return to corn – Liza Malyshko

Growing demand and prices are encouraging farmers to return to corn, and planting rates are very high. As of May 24, 3 809.4 thou hectares of corn have been planted in Ukraine.

The area under corn will be slightly less than last year – 3.9 mln hectares against 4.113 mln hectares. This forecast was announced by the consulting agency UkrAgroConsult.

According to Liza Malyshko, grain market expert at UkrAgroConsult:

“Initially, the market expectations were lower, but the growth of demand from exporters, as well as more attractive prices during the spring, encourage farmers to plant corn. This is confirmed by the very high planting rates – more than 700 thousand hectares per week in May. According to some surveys, some farmers are ready to plant even more areas than last year. However, the expansion of oilseeds does not leave much room for corn. Stabilization of the area at the level of last year or its expansion can only happen if the area under sunflower does not grow, but shrinks or at least remains at the level of last year. This scenario is not excluded either.

Now the market is focused on the Southern Hemisphere and the prospects for the future harvest, she continued. In Argentina, local analysts are lowering the corn harvest estimate to 45-47 mln tons, while a few months ago the estimates were within 55 mln tons. Also, the conditions are not very favorable in Brazil, where the second-crop corn is in the critical flowering stage. These factors support prices.

“As for next year’s global harvest, it is expected to be lower than last year’s due to the reduction in the US, Ukraine and some other countries. However, it will be the second largest global harvest, so no significant price increase is expected. Among the important features of the upcoming season for Ukraine is the growth of corn acreage in Europe. The fact is that due to weather conditions, the EU countries could not fully fulfill their wheat sowing plans. Therefore, the area under late crops, including corn, is expected to increase. France and Germany, for example, may increase their corn acreage by 10% compared to last year,” forecasts Liza Malyshko.

Tags: corn, prices, sown area, Ukraine