The demand for corn in the ports of Ukraine remains robust, driven by active exports, even as prices face pressure from declining world quotations.
According to the Ministry of Infrastructure of Ukraine, there are currently 113 ships awaiting entry into the ports of Odesa, Chornomorsk, and Pivdenny, poised to export approximately 3 million tons of cargo.
In February, the Black Sea Corridor showcased its strongest performance since the onset of Russia’s full-scale invasion of Ukraine, with port cargo turnover reaching 8 million tons, including 5.2 million tons of agricultural products. Notably, 90% of domestic agricultural products are exported via sea routes.
Since August 2023, the new corridor has facilitated the passage of 911 dry cargoes and tankers, transporting 28 million tons of cargo, including nearly 19 million tons of agricultural products, to 42 countries across Europe, Asia, and Africa.
Bloomberg reports that China capitalized on the recent drop in prices to a 3-year low by purchasing over 600,000 tons of Ukrainian corn post the New Year holidays, indicating sustained demand for grain in Ukraine in the months ahead.
Additionally, amidst rising domestic prices, China acquired 5 ships of American sorghum and 6 batches of barley from various origins for delivery in April-May. Meanwhile, corn futures in Chicago dipped to their lowest level since 2020 due to active exports from Brazil and the United States.
Despite these fluctuations, purchase prices for corn in Black Sea ports held steady at $140-145/t or €129-133/t during the week, with traders ramping up demand to fulfill contracts.
On the eastern border, corn is being offered at €125/t, marking a €5/t increase from the previous week, although demand from the EU continues to decline.
The European Commission forecasts a 33% decrease in corn imports to the EU for the 2023/24 fiscal year, alongside a 17% increase in domestic production. Ukraine remains the main supplier, accounting for 42% of corn imports to the EU.