Corn prices in the ports of Ukraine once again exceeded the level of $250/ton

After the fall last week for 15-20 $/t procurement corn prices rebounded to $250/t delivery port after growth of prices on the stock exchange in Chicago and the rise in price of oil.

the Main driver of movements in corn prices in recent years has become the fall, followed by a rapid speculative growth quotes of wheat, which were supported by the extreme cold in the U.S., which may lead d the death of winter crops.

But the cold has receded, and the price of wheat in Chicago yesterday decreased by 2%, increasing the pressure on corn prices. However, a gradual increase in oil prices supported the corn market and allowed the March futures to remain unchanged at 216,7 $/t

Yesterday the April futures for Brent crude rose 2.8% to a 13-month high 65,13 $/barrel, while the March futures for WTI crude - by 2.86% to 61,72 $/barrel due to a reduction of production by 40% to 4 million barrels/day through the blackout, caused by severe frosts. In the absence of fundamental factors supporting oil prices will gradually decline as the resumption of production.

the corn Market remains under pressure from weak demand, given the absence of Chinese buyers.

Yesterday, the South Korean refiner MFG purchased in the tender only 69 thousand tonnes (out of a planned 140 thousand tons) price 295 $/t CFR for delivery in June.

In Ukraine, the supply of corn to the ports was reduced due to heavy snowfall, so traders have raised the purchase price to 248-251 $/ton, while the price proposals are 258-260 $/t for deliveries to the port.

However, export prices of domestic demand for corn will remain at the level 255-256 $/t FOB, which limits the increase in purchase prices. Recall that on several occasions this season the purchase price at the port exceeded the price of FOB (loaded on the ship), while the average cost of handling in the port is 8-10 $/t

Ukrainian producers are holding back sales of corn, and even lower prices last week did not increase proposals. But with a March on the world market will be the Argentine corn, which will further increase the competition among sellers.