Ukrainian corn dropped on crude oil price collapse — traders

The Ukrainian corn market is under pressure from world factors. Lower futures quotations amid falling oil prices and increased competition with grains from South America and the USA are reinforced by weak external demand, Refinitiv Agriculture reports.

"There are few corn deals, according to Ukrainian traders. Despite the daily decline in prices on consumer markets following the futures, there is practically no demand," noted the traders.

As reported, on the basis of CPT Odessa, corn prices have also been declining significantly every day since early this week. At the same time, as noted by market operators, despite the fall in prices, corn sellers still have large volumes of corn on the market. However, exporters are not in a hurry to buy goods in a falling market.

"The depreciation of the national currency, along with falling prices, has brought additional uncertainty to the market. Market operators note an increase in UAH payments and a decline in trade in foreign currency," the analysts say.

As a reminder, since the start of 2019/20 (July 2019 – June 2020), Ukraine has supplied 43.63 mln t of staple grains to foreign markets. As of Mar. 18, corn shipment reached 21.71 mln t, 3.46 mln t more y-o-y.