Corn stock quotes are rising, but prices in Ukraine continue to fall

Corn quotes have gained new grounds for growth, and after the heat in France, there is now the prospect of stopping sea exports from Ukraine and another increase in oil prices by 20% in a week.

 

The main factor behind the increase in quotes was the suspension of loading operations of vessels in Ukrainian Black Sea ports after the damage to about a dozen civilian vessels in recent weeks, as well as damage to grain terminals, which forced international traders to suspend purchases at ports for an indefinite period.

 

Traders have practically stopped purchasing corn at ports, and processors have reduced prices by UAH 500-1000/t to UAH 8000-8500/t with delivery to factories, as domestic prices for feed wheat and barley are also falling.

 

Demand for Ukrainian corn from European buyers remains high, but now, due to increased demand for rapeseed transshipment at terminals on the western border, as well as demand for European trains, it is practically impossible to find quotas for transshipment and shipment of corn by rail until October-November.

 

During the week, November corn futures on the Euronext exchange in Paris rose by 5.7% to €257.75/t or $293/t (+18% per month), which will continue to maintain high demand for imported corn in the EU, which will benefit American and Brazilian farmers, rather than Ukrainian farmers who have difficulties with supply logistics.

 

December corn futures in Chicago have risen 5% to $191.9/t over the past 7 days (+12% month-on-month) amid rising oil prices and forecasts of hot weather in the US corn belt for the coming week with minor scattered precipitation, which could worsen the condition of some crops.

 

Weather with moderate temperatures and precipitation continues to favor the development of corn crops in Ukraine, so the harvest forecast remains high.