Ukraine’s corn exports fell to record low in October

Corn harvesting in Ukraine is significantly delayed due to prolonged rains. By the beginning of October, only 3.45 million tons had been threshed, compared to 10.6 million tons last year. Exports remain at a record low of about 60 thousand tons. Against this background, prices are gradually decreasing, and traders are becoming more active in the direction of Italy. This is reported by Spike Brokers.

In October, Ukraine exported only 60 thousand tons of corn, compared to 348 thousand tons in the same period last year. This dynamics is due to the slow pace of harvesting and limited supply.

Against the background of the expected increase in supply, most buyers began to gradually reduce prices. At the end of the week, corn in the direction of sea ports was traded in the range of $ 205-207 / t with delivery in October-November.

The spot price index for corn with delivery within 30 days decreased by $1/t compared to Friday last week — to $204/t.

“A significant shipment of corn contracted under forward agreements towards Italy is expected on the western border. The limited supply of locally produced corn in the EU has forced Italian importers to reorient railway routes to Ukraine to cover spot demand and eliminate the grain deficit,” the brokers note.

Spike Brokers added that the optimization of logistics from Ukraine to Italy is stimulating the growth of trader activity in the border segment. By the end of November, about 200 thousand tons of corn are expected to be shipped by rail to Italy.

Corn prices on FCA terms (Eurowagon, Hungarian border) remain stable within 184-186 €/t with delivery in November.

Tags: Ukraine, corn, prices