Ukraine is losing its main corn market

The delay in the harvesting campaign and the producers’ restraint in selling corn are leading to Ukraine losing its main market. This is reported by Spike Brokers.

Ukraine’s share in corn imports to the European Union has fallen to 17%, while last year it was almost 50%. As of October 13, Europe imported 4.3 million tons of corn, of which:

• 2.4 million tons — of Brazilian origin,
• 900 thousand tons — of American,
• 720 thousand tons — of Ukrainian.

The corn harvest continues with a delay. As of October 16, 4.9 million tons have been threshed against 13.1 million tons last year on the same date.

“Usually, the first 10 million tons of harvested corn began to put pressure on prices, which had the potential to reduce prices by 5-10%. This year, 5 million tons of corn harvested in mid-October are already putting pressure on prices amid weak export sales and shipments,” the report says.

At the end of last week, corn was trading towards seaports in the range of $203-204/t for delivery in October-November.

The spot price index for corn for delivery within 30 days remained unchanged compared to Friday, October 10 — $204/t.

According to brokers, the market on the western border of Ukraine remains a fast and effective alternative to meet demand on the Italian market. While ship batches are being formed in the ports, Ukrainian corn is already being shipped by train to Italy, where the journey takes up to 5 days compared to 8-9 days by sea.

Prices for corn on FCA terms, loaded into a Eurocar at the Hungarian or Slovak border, began to decline and traded in the range of €182-183/t for delivery in November.

Tags: corn, EU, Ukraine