High world corn prices support purchase prices in Ukraine

Global corn prices continue to rise following oil prices and amid a drought in South America, which keeps purchase prices in Ukraine at a high level.

Due to increased tensions between Russia and Ukraine, oil prices have risen by 15% in recent weeks to 9 96/barrel, followed by all "energy" goods that have risen in price. So, March corn futures in Chicago for the week rose by 3.2% to 2 257.8/ton. they are also supported by dry weather in Argentina and another decline in harvest forecasts in South America.

In Ukraine, purchase prices for corn for the week increased in ports by 5 5-8/ton to 2 270-274/ton or UAH 8700-8800/ton, returning to the level that preceded the fall. Traders are actively buying grain, and despite the threat of Russia's blockade of Black Sea ports for military exercises, there is no reduction in ships for loading in ports.

Due to strong demand, Ukraine exported 17.3 million tons of corn in my 2021/22 as of February 14, which is 37% faster than last year's pace.

March Black Sea corn futures in Chicago fell slightly to 2 288.25/ton yesterday, but remain at a high level as a week or two ago.

Corn exports from the United States during February 4-10 increased by 39% compared to the previous week to 1.455 million tons, and amounted to 20 million tons in the season, which is 12.5% lower than last year's pace.

Experts of the Buenos Aires Grain Exchange lowered the forecast for the corn harvest in Argentina in 2021/22 MG by 6 million tons to 51 million tons due to the deterioration of crops. As of February 10, 28% of crops were in good or excellent condition, 47% were in satisfactory condition, and 25% were in bad and very bad condition.

Brazil is actively sowing second-crop corn. According to the agency AgRural in the central and southern states, as of February 14, 42% of the area was sown (11% last year), and the reserves of soil moisture are quite high. At the same time, the agency lowered its forecast for the country's corn harvest in 2021/22 MG to 110.9 million tons due to a decrease in the first corn harvest, in particular for the state of Rio Grande do Sul-by 55% at once from 6.11 to 2.77 million tons.