Prices for Ukrainian maize are falling due to low demand
Ukraine 2018/19 Mr will increase in comparison with the previous season, maize production by 19.4% to 29.5 million tonnes, and exports to 22 mln tonnes, reported the Ministry of agrarian policy.
As of September 18, with 402 thousand hectares (9% of the areas) produced 2.2 million MT of corn with a yield of 5.49 t/ha.
Weather helps to ensure a good harvest of corn, however, it may suffer the fate of last year's gathering, when until mid-January due to low demand for domestic maize prices in the port did not exceed 150 $/t
If a month ago for the corn of the new harvest in the port offered 180 $/ton, now the price dropped to 156-160 $/t or 5200-5250 UAH/t
the Main factor in the falling prices were the projections for the increase of corn production in the US and lower prices for it to to 135.2 $/t and low export demand for wheat and barley, which caused port congestion and delays buying of maize in the ports.
Trade disputes between the US and the EU and China will allow Ukraine to increase exports of corn in these areas. Due to the drought-induced lower production in the EU will increase imports of maize to 19.5 million tonnes. However, the chances of domestic corn to occupy a niche in the EU market will depend on the ability of traders and logistics to ensure rapid shipping of grain from elevators.
Brazil continues to export corn, and in September plans to sell 3.2 million t of Dry weather in the U.S. accelerates ripening corn and its output to the world market.
Thanks to favourable weather, the pace of planting corn in Brazil ahead of schedule. According to the Agency Deral, corn first crop is sown 37% of the planned areas as opposed to 12% at the same date last year, which could lead to earlier grain harvest in February.