Ukrainian corn maintains competitive positions in Southern Europe and the Mediterranean region

After a long decline on the CBOT last week, the corn complex has entered a technical recovery.

This is reported by analysts at Spike Brokers.

The September CBOT contract added 4.5 c/bu from the weekly lows on the background of active closing of short positions by funds and stable export demand. The market received support despite the absence of significant weather threats in the USA.

The European market also stabilized. MATIF added €1 for the week against the background of expectations of dry conditions in France, Hungary and parts of Central Europe, which keeps the focus of market participants.

The Ukrainian physical market remains more inertial. SPIKE Spot Index CPT Odesa fell to $217 (-$2). Exporters continue to fulfill existing shipment programs for June and July, which limits the pressure on purchase prices.

In the first 15 days of June, Ukraine exported 1.04 million tons of corn, which is more than half of the country’s total agricultural exports for this period. The main buyers remain the countries of Southern Europe and the Mediterranean region, where Ukrainian corn maintains competitive positions despite the active entry into the market of Brazilian safrinja.
Prices for the new corn crop continued to decline to 185-188€ FCA Chop and 208-210$ CPT port with delivery in November-December.

Tags: Ukraine, corn