Offer prices for Ukrainian corn are $5-10/t higher than what Turkish buyers are willing to pay

Export prices of Ukrainian corn continue to rise, and hand-sized lots for delivery in April-May are now offered at $256-259/t CIF Marmara, while a week ago prices were $255/t, and according to ASAP Agri, Turkish buyers are willing to pay no more than $251/t.

Let us recall that it was the decision of the Turkish government to reduce the duty on the supply of 1 million tons of corn that led to a sharp increase in corn prices in Ukraine. At the same time, the country’s Ministry of Trade reports that almost half of the corn import quota has not yet been used, and as of mid-April, about 480 thousand tons of the allocated 1 million tons were still available.

On the domestic market of Turkey, corn prices are also growing, and on the Konya stock exchange, quotes increased from $283/t to $288/t during April 4-11.

Rising corn prices in Ukraine and Turkey could lead to the second part of the quota being closed by Russian suppliers, and demand for Ukrainian corn will fall both from Turkey and the EU, where prices are falling against the backdrop of significant stocks of wheat and barley at the end of the season.

Therefore, Ukrainian farmers should accelerate corn sales at high prices, which traders, trying to fulfill contracts, sometimes set above the market level.

Tags: prices, Ukraine, corn, Turkey