Ukrainian traders have intensified the purchase of corn
Since the beginning of Russia’s war against Ukraine, international traders working in Ukraine have stopped purchasing grain and began actively shipping already purchased volumes through the ports of the Danube and the western borders to Romanian ports and buyers in the EU.
The creation of new logistics chains and good price conditions on the domestic and world markets intensified the purchase of corn not only for foreign exchange contracts with delivery to ports or border crossings, but also for the hryvnia on an ex-elevator basis.
Small traders began to buy corn at 5500-6100 UAH / t with VAT (190-210 $ / t) in elevators, but the cost of delivery by truck to the ports of the Danube is 1600-2200 UAH / t (55-75 $ / t), by rail to transfer points – 1200-1450 UAH / t (41-50 $ / t), and transshipment and delivery to Romanian ports costs another 1300-1450 UAH / t (45-50 $ / t).
Rail transportation of corn to the western border stations is limited by a convention to Romania, Moldova and Poland, which delays deliveries and forces traders to raise prices to speed up deliveries.
Ukrainian Danube ports in Reni and Izmail are improving logistics and increasing transshipment, raising demand prices in these regions.
Demand prices for supplies of Ukrainian corn in May – June are:
- border with Poland DAP Izov – 235-250 $ / t, DAP Yagodyn – 235-245 $ / t,
- Giurgiu port – 245-255 $ / t,
- the port of Constanta (Romania) $ 285-295 / t,
- port of Reni (Ukraine) 240-255 $ / t.
From May 18, Ukrzaliznytsia will restrict the transportation of corn to Reni and Reni-Port stations, which will lead to higher prices with delivery to these ports in order to ensure the fulfillment of previously concluded contracts and another jump in the cost of trucking.
The decline in the May report of the USDA corn production forecasts for the United States and Ukraine in the new season led to an increase in stock quotes.
- On the Chicago Board of Trade, June futures for Black Sea corn rose 1.9% to $ 344.5 / t, and December futures rose to $ 340.5 / t.
- At the same time, July futures for US corn rose by 1.9% to $ 313.7 / t, and December – by 1.7% to $ 300 / t.
Sowing of corn in the United States is very slow, and as of May 15, only 49% of the area was sown, compared to 78% last year and 67% on average over 5 years.
As of May 12, 3.2 million hectares have been sown with corn out of the planned 4.85 million hectares, which is significantly lower than the 5.47 million hectares sown in 2021, given the rising cost of mineral fertilizers and gas prices for drying corn. in the fall.
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