Accelerated harvesting and logistical problems lower corn prices at Ukrainian grain elevators

Last week, World corn prices rose with the support of oil and wheat markets, which stopped the fall in export prices for corn in Ukrainian ports, but purchase prices at Grain Elevators accelerated the decline amid a possible change in railway tariffs from November 1 and an increase in supply.

The weather in Ukraine, the United States and the EU contributes to the acceleration of harvesting and an increase in the supply of new crops.

In the United States, as of October 24, corn is threshed on 66% of the area, compared with 53% on average over 5 years. Corn exports from the United States for the week fell from 976.2 to 545 thousand tons, and in general since September 1 amounted to 4.7 million tons , which is 44% lower than last year's pace.

Heavy precipitation in Brazil and Argentina allowed to activate corn sowing. However, the bearish news for the corn market has not yet affected the quotes.

Last week, December corn futures continued to recover from the fall caused by the October USDA report and rose to 2 211.8/ton, which is almost in line with the level of the previous month.

November corn futures on the Paris Stock Exchange also rose last week, but yesterday fell by €1.75/ton to €247.25/ton or € 288.86/ton, adding 10% in price for the month overall amid a delay in harvesting in France, even despite the increase in the EU harvest forecast.

In Ukraine, purchase prices for corn remain at the same level in ports, but the pressure on them increases as supply increases.

As of October 22, 11.2 million tons of corn with a yield of 6.34 t/ha were harvested from 32% of the threshed areas.

In October, Ukraine exported only 385 thousand tons, and in general, since July 1, 1.81 million tons, which is 18% faster than last year's pace due to active deliveries of the old crop in July.

The increase in tariffs for railway transportation due to a shortage of fuel and wagons has led to an increase in the cost of road transportation and a sharp drop in purchase prices at domestic elevators by 100-200 UAH/ton to 6600-6900 UAH/ton. traders take into account the increased transportation tariffs and prefer purchases with delivery to the port.