Prices on Ukrainian corn market surprise
the price of domestic corn old crop fell below the price level for new crop, which is very strange for this period when reserves are almost exhausted, and the demand heats up prices.
After the jump with $150/MT in the beginning of the year to 195-200 $/t CPT-port in April, in may the prices at the port fell to 179-180 $/t due to the reduction of demand for Ukrainian corn.
the prices of corn of the new crop with delivery in October-November have already crossed the level 180-182 $/t
DFS reports that as of 23 may, Ukraine in the season 2017/18 exported 15.66 million tons of corn versus 17.4 million tonnes to 17 may 2017 Experts USDA assess the export of Ukrainian corn in 2017/18 MG to 20 million tonnes.
According to Gostamsluzhby, corn reserves in Ukraine decreased from 6.5 million tonnes a year ago to 6,126 million tonnes as of may 1, of which 3,082 million tons is the enterprise and 3,045 million tonnes – at the enterprises for processing and storage of grain.
Traders expected growth of demand for Ukrainian corn from China through its intense trade relations with the United States. However, in China to satisfy domestic demand the sale of 40 million tonnes of corn from state reserves.
Due to the rise in price of Ukrainian corn, the US in Q1 2018, increased the export of corn to Spain to 342,2 thousand tons, although last year did not put the corn to this country.
the EU increased its imports of Ukrainian corn compared to 2016/17 MG 7% to 6.82 million tonnes and became the largest buyer of Russian grain, whose share in the total imports of corn in the EU was 46%.
Reduction due to drought forecasts corn production second crop in Brazil may intensify the demand for corn old crop that would allow Ukraine for the new season to export 4-5 million tons of corn.