Exporters shift to purchasing Ukraine’s new-crop corn

Ukraine’s corn market is increasingly shifting its focus to the new crop, while exporters are gradually reducing their purchasing activity for old-crop grain, according to Spike Brokers.

The brokerage reports that the indicative corn price on a CPT Odesa basis declined by US$5 over the past week to US$212/tonne. Meanwhile, new-crop prices have remained stable at US$205–206/tonne CPT port and €185–188/tonne FCA Chop for November–December delivery.

According to Spike Brokers, offers of new-crop corn continue to increase, limiting price expectations for the second half of the year.

During the first 25 days of June, Ukraine exported 1.62 million tonnes of corn. The main destinations for Ukrainian shipments were Turkey, Italy, Spain and the Netherlands.

The global corn market remains mixed. In the United States, September CBOT corn futures resumed their decline after a brief recovery, pressured by strong crop condition ratings and expectations ahead of the USDA’s quarterly grain stocks report and updated planted acreage data. However, forecasts of hot weather during the pollination period continue to limit further downside.

In contrast, the European market has been strengthening. August corn futures on MATIF posted solid gains amid prolonged heat and insufficient rainfall in France, Germany and other parts of Central Europe. Concerns over potential crop losses are supporting new-crop prices, although expectations of large corn supplies from Ukraine and other Black Sea countries continue to cap further price increases.

Tags: Ukraine, corn, prices