ODESA: The rainy weather of September in Ukraine delays the harvesting of sunflowers, soybeans and corn. Purchase prices for corn are rising against the background of active exports from the Black Sea ports and increased demand from domestic consumers.
The decline in oil prices puts pressure on world prices for corn. In Ukraine, corn prices remain below world prices, therefore, they have the potential for growth if grain corridors continue to operate after November 20.
Purchase prices for feed corn in the ports increased by 5-10 $/t over the week to 188-215 $/t or 7400-8200 UAH/t, which increased the volume of offers and led to the formation of queues for 2-3 days.
Corn exports in the period September 1-26 amounted to 1.54 million tons (130 thousand tons for the same period last year). In total, in the season it reached 4.23 million tons compared to 1.4 million tons on the same date last year. Farmers are actively selling the old crop to prepare warehouses for the new ones. However, traders have limited purchases after Russian drone attacks on the port of Odesa and Putin’s statements that grain corridors do not contribute to resolving the global food crisis, since grain goes not to Africa, but to the West.
As of September 22, only 0.5% of the corn area was harvested. Due to the slowdown in supplies, processors raised prices to 6,500-6,700 UAH/t with delivery to the plant, which increases competition with exporters. Export demand prices for DAP – border with the EU countries rose to 250-260 $/t. However, supplies in this direction are limited due to logistical difficulties.