Analysts named the main reasons for the fall in Ukrainian corn prices

The latest Russian attacks on the port infrastructure of Chornomorsk and Yuzhnoye greatly reduced traders' optimism. Corn was the most affected, prices for which during the week decreased from $210/t to $200-203/t at the SRT port. Olivier Bouillet, the head of the analytical department and insights of ASAP Agri, told Latifundist.com about this.

 

Analysts consider the reasons for such a drop in prices to be:

• An increase in the cost of ship freight in the ports of Ukraine after the attacks of the Russian Federation.
• Use of military risk insurance.
• Low demand, particularly from China, amid seasonally increased competition from Brazil.

 

It is worth reminding that the physical market of Ukraine was recently in a state of backordering, when contracts for later deliveries (November) were concluded at lower prices than for futures (October), which indicated overestimated spot prices.

 

Experts believe that the situation is similar in the fodder wheat market, while food wheat prices remain stable.

 

After the October WASDE report, global markets were in the red zone. Corn futures are testing the $/t/bushel level, and soybeans are already trading below $10/bushel.

 

However, both the global and Ukrainian markets look ready for a certain stabilization, - Bouye believes.