Ukrainian corn marks down midst low demand

Ukrainian corn continues falling in price, supply prices for May shipments have dropped to 176-177 USD/t FOB, while demand remains low, Grain Trade reports.

"However, the procurement prices in port are kept at a high level of 167-169 USD/t as traders cannot close their contracts as a result of sales limiting by producers, hoping for higher prices even despite the fall in demand and prices for oil and ethanol, which will last at least 4-6 months," noted the experts.

It is reported that ethanol production in the U.S. has been declining rapidly for the third consecutive week, declining by 18-25% on a weekly basis. This, in turn, reduces domestic demand and prices for corn and puts pressure on the world market, where significant available volumes of corn are appearing.

May corn futures in Chicago fell on Apr. 15 by 3% to 128.97 USD/t, although during the session it had dropped to 127.97 USD/t responding to the data on lower ethanol production.

Grain export shipment from Ukraine has grown to 48.14 mln t since the start of 2019/20 (July 2019 – June 2020). Corn supply has reached 24.6 mln t, 11% more y-o-y.