Low importers demand pressed corn prices down

Export quotations FOB Odesa for Ukrainian corn declined last week. Exporters note the weak interest of buyers, especially with delivery in March. However, there are quite many corn offers at low prices, Refinitiv Agriculture informs.

"The main activity in Ukrainian corn trading is concentrated on supplies in the period April-May, traders note. Longer periods are already losing out to offers from South America," the message reads.

As analysts note, after a strong decline, exporters expect a rapid positive correction, as prices on the foreign market have already fallen significantly on negative information background.

According to the report, there was a slight adjustment of corn prices CPT-Odesa after the rise in exchange quotations in early March. After a sharp decline, the price corrected slightly upwards.

"The reaction to the rise in price was the suspension of sales by producers in anticipation of a possible further rise," summed up the analysts.

As a reminder, since the start of 2019/20 (July 2019 – June 2020), Ukraine has supplied 41.31 mln t of staple grains to foreign markets. As of Mar. 4, agricultural commodities shipment increased by 8.23 mln t (25%) from the prior year's comparative period.