Traders ready to pay premium price for Ukrainian corn — Refinitiv
Last week, the Ukrainian corn market enjoyed moderate support from several deals for supplies to China, as well as from a Turkish tender, Refinitiv Agriculture reports.
According to market operators, weak purchase activity on the external market supported FOB prices for spot deliveries, while the purchase prices on the CPT basis were practically the same.
"Ukrainian corn is the most likely source of supply in the Turkish tender, as there are practically no other corn offers in the Black Sea region," said several traders. "Corn of Russian origin is no longer taken into account due to the lack of exports above the quota. Exporters expect that Turkey may resume purchasing corn amid strong domestic demand for coarse grains and hope for higher price levels."
Export quotations for corn on the CPT Odesa basis continued rising and as a result, the price reached 169-172 USD/t, which is close to the level of FOB prices. Traders also explain the higher prices by the need to buy for export programs for the Chinese market. With such purchases, traders are ready to pay a premium price on corn.
"It is most likely that shorts are being closed," Ukrainian trader explains high prices.
Some exporters also run in the Iranian direction, which may also be the reason why corn prices are so high, adds another trader.
As of May 22, corn shipment from Ukraine in 2019/20 totalled 28 mln t, 1.6 mln t higher YoY.