1 September 2020, 16:41, Grain

Ukrainian corn offers posted record high — Agritel

In Ukraine, corn CPT-Port Odesa offers were posted yesterday 31 Aug up by +4 USD compared to Friday 28 Aug, at 173 USD/t. This is a new high since the launch of the forward contracts in 2020/21, the Agritel consultancy reports.

"In the areas most affected by the summer drought, i.e. the central part of the country, some producers have returned fields or cut for silage the crops originally planned for grain. As a result, production prospects are revised downwards," the report reads.

It is noted that the European Agritel Tour team had the opportunity to confirm this last week during the crop tour.

The market for October/November/December delivery has recorded a significant rally of +25 USD in the space of a month.

"The loading schedule this autumn is intense and farmers are still reluctant to sell in this bullish market context. Traders fear defaults on previously signed contracts at much lower price levels. Some are even suggesting to producers to revise the initial price upwards in order to secure autumn deliveries as much as possible... This unprecedented situation attests to the current tension on the corn market in Ukraine," analysts comment.

As a reminder, the estimate for corn and sunflower production in Ukraine was again revised downward by the Economy Ministry of Ukraine.

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