Corn prices in Ukraine fall under the pressure of low export demand
the supply of corn in the world market is growing due to the acceleration of the harvest in Argentina and increased sales in Ukraine, where producers held back the corn until the spring of in anticipation of high prices.
Ukrainian corn remains the most expensive on the market, because it offer 263-270 $/t FOB, while the American – in 245-250 $/t FOB. So buyers increasingly prefer the Argentine corn from the new harvest, which is offered at 230-240 $/t FOB. Against this background, the price of demand for Ukrainian corn fell to 258-260 $/t FOB with a premium 1-2 $/t for the party, certified in China.
within a week exporters have reduced the price of corn in the port 3-4 $/t to 252-254 $/t and the torque – 100-150 UAH/t to 7950-8050 UAH/t due to the depreciation of the dollar. Competition exporters amounted to processors that all week kept prices at a high level 7800-7900 UAH/t with delivery to the plant, which allowed them to intensify the purchase. Yesterday, however, and they reduced the price of 50-100 UAH/t to 7600-7750 UAH/t.
Precipitation, which will be held in Argentina in the near future, reduce dry phenomenon, but more will affect the soybean crop, not corn, which continue to gather. So for now, analysts are left to assess the production of corn at 46-47 million tons.
the May corn futures on the stock exchange in the United States last week after the publication of the report by the USDA declined slightly, but yesterday rose by 1.8% to 216,5 $/t supported data export.
As of March 11, the actual weekly corn export amounted to 2.2 million tonnes, which is the second record weekly figure since 1989. Just season the exported 29.6 million tons projected by the USDA 66 million tonnes of corn. To achieve this indicator need to export 1.5 million tonnes of corn a weekly basis, but export sales in the last month was quite low and was only 1.96 million tons, which is in the near future will lead to a reduction in exports.
the Fall of wheat prices lowers the demand price of corn for delivery in Asia. According Agrisensus, prices in the demand for the supply of corn to South Korea and Vietnam in may be 289-292 $/t, and in June – 284,1 $/t, which increases pressure on prices.
the completion of the rains in Brazil allowed farmers to accelerate the corn second crop, which is sown 74% of the planned areas, compared with 89% at the same date a year ago. On the background of a significant amount of moisture necessary to count on a good harvest. Corn second crop starts exporting in July and August, so buyers expect a further decline in world prices under pressure from the completion of the harvest in Argentina, as well as the first harvest and active planting corn second crop in Brazil.
