Corn prices reached the level of wheat
the Price of corn in Ukraine is growing with incredible speed, adding each week for 5-8 $/ton. After the publication of USDA report on Monday prices at the port rose to the level of wheat 187-188 $/t
Activation of domestic demand for corn from China and the EU leads to the speculative price growth, although the global balance sheets from the USDA remain balanced, and transitional remains quite high. The EU lowered the import duty on maize to zero, which will contribute to the increase of import from Ukraine, which in 2017 amounted to more than 8 million tons.
the Price of corn on FOB is 208 $/ton for shipments to China, which corresponds to the level of prices for Russian wheat with protein of 12.5%.
a Similar imbalance price indicates the undervaluation of wheat or corn overvalued by the market speculators. The increase in the price of feed barley to 210-215 $/ton thanks to strong demand from Saudi Arabia suggests that feed grain can be more expensive food under the condition of low carryover stocks. However, the global market is now sufficient supply of corn, and the yield of the new harvest from South America to meet the increase in demand at a high price.
the Seasonal increase in the supply of corn from the Ukrainian manufacturers on the background of rising world prices will put pressure on prices in the short term.