Prices for Ukrainian corn pressed by low demand

Export quotations for Ukrainian corn are pressed down as a result of weakened external demand and increased competition amongst major suppliers, Refinitiv Agriculture writes.

Although corn prices are quite high, they are determined by high procurement prices based on CPT port.

It is reported that Ukrainian traders observe weak demand for corn as there are more attractive corn supply offers from Argentina and the U.S. Corn offers from South America and falling prices keep market operators from active trading.

"Purchasing prices for corn offered by exporters on the basis of CPT port do not attract producers. They hold on to stocks, hoping to still sell them at a higher price. As a result, the supply of corn in the market has significantly declined," analysts say.

According to them, one of the reasons for the producers to keep high prices may be the run-out of corn stocks in Ukraine.

As informed by a market operator, corn stocks have already run out in different parts of the country. At the same time, statistics show that corn stocks are still sufficient.

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As of April 1, 2020, corn stocks in Ukraine totalled 7.717 mln t.