Ukrainian corn will compete with low-quality French wheat
Ukrainian corn will compete with French feed wheat in the markets of North Africa. This opinion was expressed by Zsolt Winche, Senior Vice President of R.J. O’Brien, an independent futures brokerage company, during his presentation at Trend & Hedge Club on August 14.
“In my opinion, some of the demand will be there. But in France, the wheat is of lower quality, and over time, this wheat will have to compete with corn, because it is not milling,” the expert said, adding that this factor could hold back the prices of Ukrainian corn, which are currently high.
He added that there is no expectation that Ukraine will be completely off the market. Obviously, the harvest is small, farmers are not selling, and prices are high. However, there will most likely be adjustments in the future, Zsolt Winche believes.
The expert noted that he expects the demand for U.S. corn to come from China. “The basis of the U.S. corn will be under pressure, and now the prices in Ukraine are higher. Therefore, we expect China to increase purchases of corn from the US.”
Zsolt Winche also advised Ukrainian farmers to take advantage of the current high prices. “I would say that they should take advantage of this and increase their sales.”
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