Ukrainian corn market slumps due to weak demand and large stocks

The Ukrainian corn market last week showed a decline in prices against the backdrop of weak trade and a large supply of grain. This is reported by White Brokers.

Corn prices on DAP-port terms decreased to about $229/t. On the western border, prices also sank to €200/t FCA Chop-Batyovo.

Brokers cite rainy weather in Southern European countries as the reasons for the decline, as well as a short working week in most European countries, which slowed down the conclusion of new contracts.

Additional pressure on the market is also created by the gradual sale of grain residues by Ukrainian farmers. At the same time, corn stocks in Ukraine remain significant, which limits the potential for price recovery even during periods of increased demand.

Traders are currently taking a cautious position and are working mainly on implementing already established export programs, avoiding active purchases of large batches of grain. The European direction also remains sluggish due to the sufficient wealth of individual consumers and low activity of importers.

At the same time, the market continues to monitor weather conditions in the US and EU countries, as potential risks to the new crop could support global prices in the coming weeks. However, for now, the Ukrainian corn market remains under pressure from a large supply of the old crop and subdued export demand.

Tags: Ukraine, corn, prices