Purchasing prices for maize in Ukraine increased to a record level

Unexpected market changes in the balance of corn in the United States in the January report, the USDA sharply worsened the global balance that has led to growth of stock quotes. After the world price for corn in Ukraine has increased by 10-15 $/t to a record 245-250 $/t or 8150-8250 UAH/t for deliveries to the port.

the March futures on the stock exchange in Chicago yesterday during the session increased to 212 $/MT, but then fell to 206,8 $/t, showing a weekly increase of 1.5%.

in addition, the January balance USDA market was supported by updated production estimates in Brazil. Experts Conab has lowered the forecast corn production in Brazil in 2020/21 MG 0.3 million tons to 102.3 million tonnes, whereas in the latest USDA report, it was estimated at 109 million tons, the Forecast of soybean production Conab lowered by 0.75 million tonnes to 133,7 million tonnes, which almost corresponds to the estimates by the USDA. Delay sowing soybeans, according to experts Conab, postpone sowing of maize second crop, which will lead to reduced crops and, consequently, exports.

the Rating of the corn crop in South America will be the determining factors of influence on prices in March and April.

Problems with exports from Argentina due to the possible reduction of deliveries of corn from the US has increased the demand for Ukrainian corn, resulting in bid prices in Ukraine grew up to 260-265 $/t FOB compared with 235-245 $/t FOB a week ago.

Growth rates contribute to the intentions of MSG to enter Russia from March 15, the export duty on corn of 25 €/ton, for barley – 10 €/t

Russia exports approximately 4 million tons of corn and raising the price of it will increase the demand for Ukrainian corn from the traditional Russian buyers in Turkey and Egypt.

rising prices for corn will intensify sales from the Ukrainian producers, especially against the background of rise in price of fertilizers due to the increase in gas prices.