Turkey begins selling state corn reserves, which will reduce domestic prices and demand for grain in Ukraine

Turkey’s State Grain Agency (TMA) has started selling part of its corn stocks to poultry farmers based on actual monthly consumption. According to analysts at Atria Brokers, sales could reach 200,000 tons.

In the southern regions of Turkey, as of May 2, the TMO set corn prices at $285-290/t.

Following the introduction last week of an additional quota for duty-free imports of another 1 million tons of corn, the sale of stocks will sharply reduce domestic prices and demand for expensive Ukrainian corn, especially given the decline in world prices caused by favorable weather for sowing the new crop.

Precipitation in the US is increasing pressure on quotes in Chicago, where during the week, July futures fell by 3.5% to $184.6/t (-0.4% per month), while December futures are trading $7/t cheaper on forecasts of favorable weather and increased sowing areas in the US.

The corn market is also being pressured by good weather in Brazil, which has led StoneX to raise its forecast for the second corn crop in 2024/25 MY by 2.7 million tons to 104.3 million tons, and its forecast for total production to 132.4 million tons, significantly exceeding the USDA estimate of 126 million tons.

Tags: corn, prices, Ukraine