Ukrainian corn goes up in price rapidly
Prices for corn in Ukraine are growing at warp speed gaining USD 5-8 per ton every week, Grain Trade writes.
After the USDA report release, on Monday prices in ports rose to the level of milling wheat — up to USD 187-188 per ton.
"The boost of demand for corn by China and the EU leads to speculative price increases, although world stocks indicated by the USDA remain balanced, whereas the transitional reserves are quite high. The European Union has reduced the import duty for corn to zero, which will contribute to increasing imports from Ukraine," the message says.
FOB price for corn is USD 208 per ton for deliveries to China, which corresponds to the level of prices for Russian wheat with a protein content of 12.5%.
"Seasonal increase in the supply of corn from Ukrainian producers against the backdrop of the growth of world quotes will put pressure on prices in the short term," Grain Trade summed up.
Reference: since the beginning of 2017/18, as of March 14, Ukraine exported 10.33 million tons of corn, which is 1.66 million tons less than over the same period last year.