Chinese demand backstops Ukrainian corn export prices — experts
Despite the expectation of a slowdown in demand for commodities, China's demand for Ukrainian corn supported export quotations on the basis of FOB Odesa, Refinitiv Agriculture reports.
"As reported by market operators, after the allocation of import quotas for 2020 last week, Chinese buyers were actively purchasing corn in Ukraine with delivery in the period of February-April. With low demand from other importers, China has become the main buyer of Ukrainian corn," experts say.
The total procurement volume is estimated at approximately 1.5-2 mln t. Analysts noted that the purchase prices for Ukrainian corn shipped to China do not differ much from the price levels for other directions, yet they have clearly supported the market.
"Chinese purchases do not demonstrate a large premium, however, the demand is very good," comment the traders.
On the basis of CPT-Odesa, trade activity in the corn market has decreased due to a full load of port elevators and lower procurement prices.
Previously reported that corn shipment from Ukraine as of Feb. 17 reached 17.67 mln t, 2.91 mln t more y-o-y.