A shortage of supply raises the price of corn in Ukraine
amid forecasts for a record U.S. harvest of corn in Ukraine in the spring rose sharply forward sale, and at the beginning of the summer was contracted 10 million tons of corn for delivery in October-December. A sharp rise in world corn prices due to strong demand from China and reduced the corn harvest in Ukraine 28-29,5 million tons compared to forecast of 38-39 million tons and 35.5 million tons in 2019, led to defaults on deliveries from manufacturers, especially after the price increase in the last three months of 60-80 $/t
For the execution of contracts and engagement parties traders in October were forced to raise the purchase prices at the port to 225-230 $/t or 7700-7800 UAH/t, but it has not activated delivery. Closing contracts traders lowered prices to 210-215 $/t or 7300-7450 UAH/t, but the sales almost stopped, as a result yesterday the prices rose again until 217-223 $/t or 7500-7600 UAH/t. Prices for Ukrainian maize are not correspond to the market where prices for delivery to customers are 250-255 $/ton, supply in may, Vietnam is trading at 245 $/t C&F, while prices for delivery in August do not exceed 220 $/t C&F.
the price of corn on the stock exchange in the United States since the beginning of the week rose 2.3% to 169 $/t and the lack of precipitation in Argentina, which worsens the condition of crops of corn. The long absence of purchases of U.S. corn by China reinforces the pessimism of traders. Today a report on export sales for the week, which will detail the volumes and directions of sales.
Low oil prices and the high price of corn did not affect ethanol production in the United States, which last week totaled 962 thousand barrels/day, which is 15 thousand barrels/day lower than in the previous week, corresponds to a consumption of 2.48 million MT of corn for a week and almost equal to last year's level of 1 million barrels/day.
High demand manolovo industry and exporters to raise the prices of U.S. corn for delivery in December to $220/MT FOB US Gulf, that leaves almost no options to purchase corn for delivery in December and January where, in addition to Ukraine or the United States that is widely used by manufacturers, realizing the corn at a high price.
