US and South American corn offers press down prices for Ukrainian grain

Export quotations for Ukrainian corn on the basis of FOB Odesa are pressed down amidst intense competition in the world market, Refinitiv Agriculture writes.

"The external demand for Ukrainian corn is weakening as more aggressive offers from South America and the United States are coming. At the same time, the dropout of some traditional buyers of Ukrainian grain for the holidays has led to a decline in trading activity. Market optimism about strengthening demand and a new possible market in Vietnam had a short-term effect," Refinitiv analysts consider.

As reported, corn supply CPT-Odesa has also declined in line with lower prices. Active sales changed into an inactive market. In addition, the Ukrainian market is traditionally slowing down in anticipation of another USDA report.

"The Ukrainian corn market is on hold," traders say.

Market operators report no problems with grain delivery to ports, despite a number of quarantine restrictions in the country. Grain delivery by rail to the port is even faster than before due to the absence of passenger traffic. The volume of motor transport has slightly decreased, the offer of free trucks is sufficient.

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Previously reported that a subsidiary of Lithuanian state railway company Lietuvos geležinkeliai together with its partners will deliver 0.5 mln t of Ukrainian corn annually to Klaipeda State Seaport in Lithuania.