The yield of Ukrainian maize is much less than last year
weather conditions contributed to a good harvest of corn. Through spring frosts and summer drought, the yield of grain in different regions of the country vary from 3.5 t/ha in the East to 5-7 t/ha in the centre, 7-9 t/ha in the West and 10-12 t/ha in the North.
As of October 23 with a 50% crop area harvested of 10.63 million tons of corn at an average yield of 4.68 t/ha, whereas last year it was 6.6 t/ha. harvest in the Western and Northern regions increase average yields, but last year it will not reach.
USDA in its latest WASDE report estimated corn production in Ukraine in the 2017/18 season at 27 million tonnes, while in 2016/17 MG harvest amounted to 28 million tons. Experts predict the gross yield in the range of 23.5 to 25 million tonnes.
Precipitation not only delay harvest, but can degrade its quality.
In Ukraine, the price of corn at the port stood at 149-150 $/t or 4650-4700 UAH/t, but logistical problems and delay harvesting in the near future will put pressure on the market.
the Farmers are hoping for higher prices due to the reduction of the harvest, so do not hurry to sell a large consignment of corn. But the world offers no reason to increase prices.
In Chicago December corn futures remain at the level of 138 $/ton, despite the slow pace of harvesting. Now threshed 38% of the area against 59% on average for 5 years, but the number of proposals is very high due to the sales of old crop corn.
Global prices remain under pressure from excess supply, especially in South America. Improved weather in Argentina, increases the probability of formation of a bearish price trend for corn.