The demand for corn in the ports of Ukraine remains quite high

Thanks to active exports, the demand for corn in the Black Sea ports of Ukraine remains quite high, although prices are pressured by a decrease in world quotations.

According to the Ministry of Infrastructure of Ukraine, there are currently 113 ships waiting to enter the ports of Odesa, Chornomorsk and Pivdenny, which will export about 3 million tons of cargo.

In February, the Black Sea Corridor showed the two best indicators since the beginning of the full-scale invasion of the Russian Federation in Ukraine – cargo turnover in ports was 8 million tons, of which agricultural products – 5.2 million tons. Currently, 90% of domestic agricultural products are exported by sea.

Starting from August 2023, 911 dry cargoes and tankers passed through the new corridor, delivering 28 million tons of cargo, including almost 19 million tons of agricultural products, to 42 countries in Europe, Asia, and Africa.

According to Bloomberg, China bought more than 600,000 tons (10 ships) of Ukrainian corn after the New Year holidays, taking advantage of the drop in prices to a 3-year low. Therefore, the demand for grain in Ukraine will remain high in the coming months.

In addition, against the background of rising domestic prices, China purchased 5 ships of American sorghum and 6 batches of barley of various origins with delivery in April – May. Meanwhile, corn futures in Chicago fell to their lowest level since 2020 under the pressure of active exports from Brazil and the United States.

May corn futures on the Chicago Mercantile Exchange rose 3.9% to $169/t (-5.3% for the month) after falling to a 3-year low during the week on active speculative buying.

In Ukraine, purchase prices for corn in Black Sea ports remained at $140-145/t or UAH 5,900-6,100/t during the week, although traders increased demand to fulfill contracts.

On the eastern border, corn is being offered at €125/t (+€5/t for the week), but demand from the EU continues to fall.

The European Commission predicts that in 2023/24 MY corn imports to the EU will decrease by 33% from 26.1 to 17.5 million tons compared to 2022/23 MY, as domestic production will increase by 17% from 53.1 to 62.3 million tons. At the same time, consumption will increase by 1% from 99.4 to 100.1 million tons, and final stocks will decrease by 6% to 19.2 million tons.

In 2023/24, the EU already imported 66% of the projected volume of corn, and the main supplier remains Ukraine, which supplied 42% of this volume or 7.3 million tons, which is 63.5% of the 11.5 million tons exported in the current season.

Tags: Ukraine, corn, prices