For the last two weeks prices for feed corn in Ukraine continue to gradually decline
Considering the indicators from Ukrainian traders during the last two weeks, purchasing prices for feed corn decreased by 300-600 UAH/t or 10-15 USD/t. As of March 1, the prices come mainly within the range of 6000-7200 UAH/t CPT. Thus, purchasing prices in the ports of Odesa for corn fell to 190-198 USD/t. Corn prices in the port of Nikolaev are around 10USD/t less than in Odesa. The maximum demand prices are characteristic mainly for the western and southern regions.
There are several reasons that led to the current situation. Among them are the increased supply of grain before the start of the mass sowing campaign and moderate demand from processing and livestock enterprises. But the main reason is again the significant slowdown in the pace of purchases from traders in the direction of seaports. Uncertainty about the future of the “grain agreement” is increasingly holding back trading activity in the direction of deep-sea ports and putting pressure on the purchase prices of traders.
“Grain corridor” perspectives
The Ukrainian side focuses on the continuation of the “agreement” immediately for a year. They offer to expand the range of exports and include the Nikolaev port in this initiative. Ukraine also insists on normalizing the work of the “corridor” due to the elimination of sabotage with checks by Russian inspectors. The prolongation of the “agreement” for a year instead of 120 days will provide an opportunity for planning. This is especially important for the forward market. However, market participants are rather reserved. The majority is inclined to believe that after March 19 the “corridor” will continue to work on the same conditions as now. All current problems will be preserved. In this case, the expansion of the list of agricultural export positions will lead to increased competition for the passage of vessels.