Currently, Ukrainian corn on the world markets is sold cheaper than American and Argentinian corn by about 20 USD/t. Such a price distortion is abnormal, and Ukrainian farmers in these conditions began to restrain grain sale. This was noted by the experts of the analytical center of the PUSK agricultural cooperative, created within the Ukrainian Agrarian Council, the press service of the UAC reports..
“Operators of the Ukrainian market are afraid that the offer of corn from Argentina will increase on the global market and then the conditions for the sale of Ukrainian grain will deteriorate. Currently, grain prices on a CIF basis have fallen sharply, because the supply of Ukrainian corn is high, and the demand is low.
On the markets of Europe:
- Ukrainian grain is conventionally traded at 200-210 USD/t or 186-195 EURO/t, at the same time,
- the US corn is traded at 220 USD/t or 205 EURO/t.
The gap of 20 USD/t or 18,67 R-EURO/t is abnormally large. Ukrainian corn is too cheap on global markets compared to its American and Argentinian counterparts, and there are no objective reasons for such an imbalance,” the analysts noted.
At the same time, the CPT corn market in Ukraine is currently not active in trade, many farmers keep corn and do not want to sell grain at low prices.
Ports |
Prices – CPT Basis |
| Odesa ports | 147-155 USD/t or 136-144 EURO/t |
| Small Danube ports | 150-155 USD/t 139-144 EURO/t |
“Major market players took a break in corn trading, while small and medium-sized traders are active in the market. Since CPT prices are so low that they make the corn trade unprofitable for the average farmer, many farmers are ready to postpone the sale of corn until summer or even postpone it to the next season. And although there are significant stocks of corn in Ukraine (about 17 mln tonnes), the amount available for sale is an open question,” experts stated.