Ukrainian corn has reached 200 USD/MT CPT POC – ASAP Agri

As suggested last week, buying ideas for spot batches of Ukrainian corn have now reached 200 USD/MT on CPT POC. Such level of prices was observed the last time in April 2023. Olivier Bouillet, Head of Analytics & Insights at ASAP Agri,  told Latifundist.com.

Last week, market operators reported that corn bids grew up to 197 USD/MT on the same basis before to retreat on Friday.

"All the lights are green to allow Ukrainian corn to perform well at the start of this week. Support is coming first of all form the global market and corn on CBOT that continues to perform so to display a 3-month high. In this context, report on some defaults by sellers on CPT gave a spark. Loaders have then no other choice to cover their shorts on the physical market, pushing demand for spot deliveries", — said Olivier Bouillet.

But on the same time, producers are still reluctant to sell as the price trend is clearly supportive. In addition to that, they still prefer to keep goods in the warehouse than hryvnas on account. Indeed, since November 2023, the national currency is progressively losing ground and autumn devaluations remain in all memory.

Ukrainian corn is now displayed 30 USD above CBOT, making it now uncompetitive compared to the US origin on some key destinations such as Spain for example. But the farmer is stubborn and will now want his 200 USD/MT for spot and this could support the market at least on short-term on destinations as well. Very risky business for FOB and CIF sellers is observed these days.