Some Ukrainian farmers have switched to selling sunflower seeds, reducing the supply of corn

The Ukrainian corn market showed an increase in prices last week. Prices on DAP port terms increased to $210/t due to low sales activity from farmers. This is reported by White Brokers.

The supply of grain remained limited due to difficult weather conditions – severe frosts and blizzards significantly complicated logistics and reduced the willingness of farmers to enter the market with sales.

An additional factor restraining the supply was a significant increase in sunseed prices. Against the background of an attractive market situation, some farmers reoriented themselves to selling this crop, attracting working capital without actively selling corn.

Activity on the world market remained extremely low: the number of buyers was limited, demand was weak. At the same time, individual deals with corn were recorded at $220/t FOB port.

As analysts noted, in the short term, the market looks mixed. On the one hand, limited supply continues to support prices. On the other hand, farmers’ sales may revive this week against the backdrop of predicted improvement in weather conditions and restoration of logistics. An additional stimulus may be the growing need of farmers for working capital.

“As a result, the increase in supply on the domestic market may put pressure on prices, and corn quotes may again go into a downward correction. In parallel, there is a gradual intensification of the conclusion of forward contracts, which partly forms expectations for market balancing in the near future,” White Brokers added.

Tags: Ukraine, corn, sunseed