Prices on Ukrainian corn have new factors supporting
Prices for Ukrainian maize, which in March rose sharply by 20 $/t, and then collapsed on $15/t and is now in the port 182-185 $/t, have new factors.
amid a prolonged drought, analysts have lowered forecasts corn production to 29-30 million tonnes, however, the experts of the Grain exchange of Buenos Aires (BAGE) in yesterday's report left it at 32 million tonnes.
According to BAGE, bad or very bad condition of the 75.2 per cent of crops, corn was threshed with 18% of the area, which significantly exceeds the average 5-year rate, but the yield was much lower than expected, what can cause a reduction in the gross collection.
Rabobank Analysts believe that in the event of the imposition by China of import duties on soybeans or ethanol, the price of U.S. soybeans and corn could fall by 2-2,5%. Already, Chinese importers, while avoiding the risks prefer Brazilian soybeans, although it is trading at 414 $/MT FOB Paranagua, while the price of U.S. soybeans FOBports of the United States is 403 $/t
the Increase in demand for Ukrainian corn from China has led to a spike in prices in early March. Traders expect that in April the demand will start to grow again, which will allow to strengthen prices for the Ukrainian corn.