Recent reports suggesting China’s rejection of Ukrainian corn imports have been debunked as mere rumors circulating among traders, clarifies Mykola Gorbachev, President of the Ukrainian Grain Association (UGA). Despite speculation surrounding potential import bans, there is currently no official prohibition on the import of Ukrainian corn into China. Gorbachev addressed these rumors during the Black Sea Grain Kyiv conference, emphasizing that no concrete actions, such as washouts or shipment refusals, have been observed.
Rumors and Market Dynamics
Contrary to initial concerns, analysts from Spike Brokers also confirmed that rumors regarding China’s cancellation of Ukrainian corn purchases lacked substantiation from market participants. Exporters continue to demonstrate confidence by procuring corn at stable price levels in the range of $152-155 per ton or €141-144 for shipment towards seaports. Notably, in March, China took advantage of the low price levels to secure over 20 cargoes of feed grain from both Ukraine and the United States.
Market Developments
However, market dynamics have witnessed fluctuations, as private exporters recently opted out of purchasing 264 thousand tons of American soft red winter wheat slated for delivery to China. This marks the third consecutive session of such announcements, culminating in the cancellation of a total of 504 thousand tons of grain shipments. Additionally, in April, Bloomberg reported the cancellation of 4-5 shipments of Ukrainian corn previously booked for delivery between April and June.
Amidst market uncertainties and speculations, it is essential to discern fact from rumor. Gorbachev’s clarification regarding China’s purported rejection of Ukrainian corn imports highlights the importance of verified information in shaping market decisions. While fluctuations persist in grain markets, recent developments underscore the resilience and adaptability of market participants in navigating evolving trade dynamics.