The representative of the USDA in Ukraine increased the corn production forecast to 30.7 million tons

On October 24, the Kyiv branch of the US MSG published a report in which it predicts an increase in corn production in Ukraine in 2023/24 compared to the previous season. The initial stocks of corn and wheat in Ukraine are higher than last year, so export volumes will determine the final stocks of the 2023/24 season. The withdrawal of the Russian Federation from the Black Sea Grain Initiative in July 2023 has complicated the export of grain from Ukraine, but work continues on the expansion of alternative supply routes.

Currently, Ukraine is expected to harvest 30.7 million tons of corn in 2023/24 FY, which is 17% higher than the 2022/23 FY and 10% higher than USDA's October forecast of 28 million tons.

As of October 20, thanks to dry and warm weather in Ukraine, 9.28 million tons of corn were threshed from 1.376 million hectares or 34% of the area with a yield of 6.74 tons/ha, while last year on this date 20% of the area was threshed, and the yield was 5.4 t/ha.

Against the background of the limited supply and the intensification of the calls of ships to the ports for loading, corn prices in the Black Sea ports after falling last week rose again to $125-130/t or UAH 5,000-5,200/t, while in the Danube ports they reach 135-140 $/ton

Ukrainian corn remains the cheapest on the world market, so it will continue to be in demand. However, the increase in its prices will be limited, as world prices will remain under pressure from the record world harvest.

Thus, during the week, December corn futures in Chicago fell by 3.3% to $189/t (0% for the month), and November futures on the Paris exchange fell by 1.9% to €202.5 /t or $213.5/t (-4.2% for the month).