Ukrainian corn prices rise due to growing demand in the EU

The corn market is gradually shifting its focus to the new crop. Last year’s grain has almost lost its liquidity, and there are practically no real deals with it. At the same time, Europe is demonstrating a stable interest in Ukrainian products, and demand from importers remains high. This was reported by the analytical department of the agricultural cooperative PUSK, created within the VAR.

“The new corn crop is estimated on the market in a wide range of $197–203 per ton. Some traders are already coming out with higher levels — $205–206 on a CPT-port basis with deliveries in October–November. Demand from importers is active, in particular from Spain, Portugal and the Netherlands with deliveries in November–December. The EU is facing serious yield problems. In France, the first threshing showed only 3–4 t/ha. Other corn producers — Romania, Hungary and Poland — are facing similar difficulties, which is forcing the EU to increase imports from the projected 18–19 to 22–23 million tons, and Ukraine looks to be a key supplier here,” the PUSK comments.

Ukrainian exporters have already sold about 4 million tons of the new crop to importers with deliveries for November–December. But the market may experience a deficit due to weather conditions, which will additionally stimulate the growth of purchase prices.

“Traders may have to raise prices, but a significant increase is not expected. One of the determining factors will be the course of the harvesting campaign. Due to the delay in the growing season, the first significant consignments of corn from the center and north will arrive only in the second half of October. We can predict approximate prices at $220 CPT-port in October. However, during this period, American corn will actively enter the market. “Its volume will significantly exceed needs, and this will put serious pressure on prices in October-December. So in November-January the market is likely to stabilize at $220-230 CPT-port per ton, which is in line with seasonal patterns,” PUSK summarizes.

Tags: Ukraine, corn, EU, prices