ODESA: The USDA December report increased the forecast for world corn production in 2021/22 MG, but it has not yet led to a sharp drop in prices. The market received new support factors in increased demand from China and ethanol producers in the United States.
For Ukraine, the production forecast has been increased by 2 million tons to 40 million tons. In addition, Ukraine is accelerating the export of corn. As of December 13, it has already shipped 7.862 million tons, which is 11.8% higher than last year.
Purchase prices for corn in Ukraine at the beginning of the season reached a record 270-275 $/t in ports against the background of harvesting delay. However, thanks to the recent increase in supplies, traders have lowered prices to 255-258 $ / t.
Prices could have dropped even lower, but they were supported by information that China had purchased 600 thousand tons of Ukrainian corn with shipment in January-April. If demand from China continues, Ukraine will export all corn at high prices this season.
