The fall in purchase prices for corn in Ukraine has stopped

Russia’s military aggression continues to damage Ukraine’s economy. Farmers suffer especially from the loss of the opportunity to export grain through ports. Traders are actively exporting previously purchased grain, but have almost stopped buying, which paralyzed grain trade in March. But in April, trade activity began to grow as export routes across the western borders were established.

The corn market has suffered the most, as the high cost of delivery to European buyers and long queues at crossings encourages traders to work with expensive goods – sunflower, soybeans, sunflower oil.

Queues caused by prolonged overloading or replacement of wheelsets on Ukrainian wagons led to the introduction of a convention on rail deliveries of corn to the borders with Poland and Romania. Against this background, demand prices for corn delivered to the port of Reni or Constanta fell slightly last week, but have now resumed growth.

Congested logistics infrastructure, significant supply and falling domestic prices are putting pressure on quotations. Increases the pressure of declining demand from processing plants and poultry farms amid hostilities in Ukraine and the spread of bird flu in the EU.

Demand prices for supplies of Ukrainian corn in May – June are:

• border with Poland DAP Izov – 235-250 $ / t, DAP Yagodyn – 235-240 $ / t,
• border with Slovakia DAP Chop 250-265 $ / t,
• border with Moldova DAP Mogilev-Podolsky 245-260 $ / t,
• port of Constanta (Romania) 290-305 $ / t.

World corn prices are also falling amid falling demand from China, which in some regions continues to lock down due to the coronavirus.

May futures for Black Sea corn in Chicago from the beginning of the week fell by $ 2.5 / t to $ 342 / t (losing 7.6% for the month), and for American corn – by $ 6.8 / t to 315, $ 2 / t (adding 6.7% per month against the background of delayed sowing due to rain and cold weather).

According to NASS USDA, in the United States on May 1, corn sown 14% of the area compared to 33% on average over 5 years, which is the worst figure since 2013.

Corn exports from the United States remained at a high level of 1.68 million tons in the second week, but in the season reached only 36.6 million tons of the projected USDA 63.5 million tons, which is 16% lower than last year.

The volume of corn processing into ethanol in the United States in March increased by 8.2% compared to February to 11.5 million tons due to rising oil prices and demand for ethanol.

Heat in central Brazil worsens corn crop, so StoneX has lowered its forecast for the second corn harvest by 3 million tonnes to 88.14 million tonnes. The first harvest has already been harvested, but it is used for domestic consumption. second harvest.

Tags: Ukraine, China, corn, Romania, Brazil, EU, prices, USA