Ukrainian new crop corn gained after USDA report — Refinitiv Agriculture

Export prices for Ukrainian new crop corn have strengthened after the USDA report on acreage and grain reserves was released. The strengthening of prices has led to intensified trade, Refinitiv Agriculture reports.

"The sharp reduction of US corn acreage estimates in 2020/21 has triggered an increase in exchange quotations, and then the prices for Ukrainian grain. Corn prices on the basis of CPT-Odesa after the publication of the report grew by 1-3 USD/t, on the basis of FOB by 3-4 USD/t," analysts noted.

According to the report, new crop corn trade in Ukraine has revived on the concerns of market operators about a possible prices decline in the future under the influence of the expected rich world harvest in 2020/21. According to the USDA estimates, the world corn production in the new season may reach a new record of 1,188 bln t.

Learn more: Corn Market in 2019

Despite the later start of new harvest forward contracting, traders estimate the volume of corn already sold in 2020 at 1.5-2 mln t.

As of June 26(2019/20: July-June), corn export from Ukraine totalled 30.12 mln t, 1.3% or 391 thou. t more YoY.