Corn prices collapse brought export nearly to a halt
A decrease in export prices for Ukrainian corn from 180 to 168-170 USD/t FOB for May deliveries has practically suspended its shipment, Grain Trade writes.
The producers are unwilling to sell corn below 5 200-5 300 UAH/t or 162-166 USD/t in the port, the prices traders offer to fulfill the agreements concluded.
It is reported that the decrease in export prices will lead to a decline in purchase prices in ports to 159-160 USD/t or 5000-5150 UAH/t. Experts stressed that processors also gradually lowering prices following export ones as they accumulate stocks.
"Export rates are slowing down gradually as prices fall, which may disrupt exports of the projected 31 mln t," said the analysts.
The increased global production and carryover stocks forecasts against a backdrop of reduced consumption continue weakening corn prices.
As of May 4, Ukraine's corn export stood at 26.42 mln t, 8% or 2.01 mln t more y-o-y.
The Government postponed the decision on corn export limit in 2019/20. The Annex 2 to the Memorandum of Understanding between the Economy Ministry and grain market participants was elaborated and considered by the parties.