Ukraine. The end of the export season led to a drop in corn prices

In the first week of July, Ukraine exported only 85 thousand tons of corn. The low figure indicates the end of the active export season and the transition of traders to work with other crops – wheat, barley and rapeseed. This was reported by the analytical department of the agricultural cooperative PUSK, created within the VAR.

The main attention of the market is shifting to other areas due to the reduction in corn stocks, as well as a decrease in demand from exporters. “Conventional prices fluctuate from $224–225/t to $227–228/t, if there is demand for quick delivery. But in fact, demand for corn with urgent delivery has disappeared,” analysts comment. Prices for corn of the new harvest are formed within $200-202/t, but there are no sales below $200/t.

“As soon as the price drops below $200 per ton, most sellers simply stop selling. This is the limit below which the market does not move. In July, there is no need to rush with forwards – we can expect that the price will increase in August,” analysts note. The weather factor is important for the market and price formation.

“Despite official statements about favorable conditions in the USA, signs of drought are being recorded in a number of key corn regions. The situation is similar in Ukraine, especially in the central regions, where corn is starting to experience a lack of moisture. This complicates price forecasts,” the PUSK summarizes.

Tags: prices, Ukraine, corn, export