Corn prices remain in a bearish trend

World corn prices continue to decline under the pressure of low demand and increased supply from South America.

After 5-day drop in July corn futures in Chicago yesterday stood at around 140,8 $/ton, losing for the week to 2.2%. Prices were supported by the delayed planting of corn in the United States and a week-level export 779,8 thousand tons, which is 23.5% higher compared to the corresponding period last year.

South Korean recycler KOCOPIA purchased 55 tonnes of us corn at a price 202,47 $/t in July. Now the market expects to enhance purchases as KOCOPIA lags behind other South Korean refiners, which are already 90% satisfied the demand of raw materials until the end of November.

In Ukraine, purchasing prices for maize in port for the week decreased by 2-3 $/t to 155 to 158 $/t or 4900-5000 UAH/t

Export prices of domestic corn dropped to 169 to 171 USD/MT FOB for deliveries in may, and is expected to drop by another 2-3 $/t after tender in Turkey, where 300 thousand tons of corn were purchased at the price of 179.5-185 $/t CIF.

the Main buyer of Ukrainian corn was Iran, which bought 700 thousand tons of grain and plans another 300-400 thousand tons to purchase in April.

Iran is under US sanctions, so payment on sales transactions taking place in euros in European banks. However, the intentions of the US in may to toughen sanctions can reduce the export of Ukrainian corn in that direction.

In the Iranian market, Ukrainian exporters actively competing with the Brazilian, which not too worried about sanctions. Iran is already the largest buyer of Brazilian corn, and soon from the ports of Brazil there will be shipped to 500 thousand tons of corn.

Therefore, the rate of export of Ukrainian corn in may and June will be slow, and prices will remain low.