The resumption of purchases by China halted the fall in corn prices in Ukraine

Against the backdrop of a decrease in world corn prices due to improved weather conditions in Argentina and Brazil, purchase prices in Ukraine during the past week fell to $135-140/t with delivery to Black Sea ports. However, the resumption of purchases by buyers from China, where the New Year celebration ended, led to an increase in demand and an increase in prices to $140-145/t.

In addition, traders faced with reduced supplies amid falling prices were forced to pay extra for fast deliveries to fulfill contracts.

On the western border, corn was bought at €120/t or $130/t before being loaded onto European trains, but demand from the EU continues to decline.

The increase in the interbank dollar exchange rate due to the uncertainty with financial assistance from the USA supports the hryvnia purchase prices at the level of UAH 5,900-6,050/ton.

The export of corn is quite active, and for February 1-27, it amounted to 2.455 million tons (2.935 million tons for this period last year), and in general in the season it reached 15.44 million tons, which is 17.8% lower than last year's pace. We will remind that the USDA reduced the corn export forecast in 2023/24 compared to the previous season by 17.8% from 27.1 to 23 million tons.

On the Chicago Mercantile Exchange, March corn futures fell 4.2% to $157.5/t last week (-10% for the month), but rose 1.8% to $160/t on Monday amid a rally exports from the USA.

Exports of corn from the United States for the week increased by 18% to 1.242 million tons, and in total for the season reached 19.49 million tons, which is 35% higher than last year's pace. USDA experts have increased the export forecast for 2023/24 MY compared to the previous season by 26% from 42 to 53.3 million tons.

According to the Buenos Aires Grain Exchange, due to heavy rains in Argentina as of February 21, the number of crops in good or excellent condition compared to the previous week increased by 1% to 28% (9% last year), and decreased by 1% in fair condition. to 57% (40%) and in bad by 2% to 15% (51%).

Active planting of second-crop corn in Brazil, as well as favorable weather forecasts with rains in South America and the United States are increasing pressure on corn stock quotes.