Corn prices anticipated to decline
The export price for Ukrainian corn is expected to fall to USD 160 per ton. Experts anticipate that the price may be lower than USD 150 per ton due to strong competition with the American corn, AAA informs.
"Large exporters of Ukrainian corn still have neither export strategy nor program. They did not take into account the record harvest of corn in the USA and the US-China trade war on time. As a result, 25% of the import duties on corn and soy from the US will be in force for some time and corn supplies to China from the USA will not be resumed soon," experts say.
In addition to the low demand for Ukrainian corn, exporters will have to deal with a record harvest in Ukraine, which may amount to about 30.5 million tons. USDA forecasts 31 million tons and 25 million tons of exports.
"The question is whether exporters will be able to find buyers for Ukrainian corn in the amount of 25 million tons with a colossal US trade resource. Perhaps, as a result of the drought in the European Union, another quite capacious market will open after China," analysts note.
The producers hope that Ukrainian corn will be in demand, in particular, in Central Africa.
As of September 21, Ukraine has filled nine quotas for duty-free exports of agricultural products within the framework of the free trade zone with the EU.