In June Ukrainian corn will be traded at USD 200/mt

Offers for FOB Ukraine corn loading in June have been heard as low as USD 200/mt as sellers test buying appetite from the region, Agricensus reports.

"I see sellers for May and June at USD 200-201/mt, versus no bids," one broker said, with the pressure of oversupply and idle demand that had been seen in May now rolling over into June.

Only at the end of last week, formal offers for FOB June loading cargoes had been heard at USD 207/mt, with the lower levels seemingly passed around the market informally.

"These low prices were not concretely offered, but they were buyable," a second broker said, with trading activity starting to shift towards the new crop for trading in November and December.

Ukraine is thought to still be carrying several million tons of exportable corn, with one trade source estimating the country's exports at around 15.1 million mt, versus an exportable surplus estimated at up to 18 million mt.

According to Ukraine government data, some 9.7 million mt has been exported from the country between July 2017 and February 2018, with the EU the largest single importer.

"I guess buyers are hesitating because of high premiums; on the other hand, Ukrainian premiums for the new crop are competitive for many destinations," the second source said.

Reference: corn output in 2018 is projected at 28.2 million tons, which is 14% higher than last year's indicator.