News
12.03.2018
Bad weather conditions in Brazil and Argentina contribute to rising prices for Ukrainian corn
For the period from February 28 to March 07, the corn cost on the terms of FOB deepwater ports of Ukraine increased by an average of USD 8-10/MT and amounted to USD 193-198 /MT, that is USD 24 higher than the previous year.
The main factor in the development of sustainable price growth is world trends. The weather problems in Brazil and Argentina greatly intensified the importers' demand for Ukrainian corn. Recall that traders are worried about heavy rains in Brazil, which delay the sowing of the second yield of safrina corn and can reduce crop areas and corn yields, as the optimal timing of sowing is at the end of February. At the same time, drought in Argentina will have a significant impact on corn production volume and quality.
According to March report of USDA, Argentine corn production in 2017/2018 MY is expected to reach 36 mln tons, which is 3 mln tons less than last month and 5 mln tons more than in 2016/2017 MY. The production of corn in Brazil is reduced to 94.5 mln tons, which is 0,5 mln tons less than it was projected a month earlier. The production of corn in Ukraine is estimated at 24,115 mln tons, and the export potential is 20 mln tons. Worldwide production is projected at a level of 1,041 bln tons, which is slightly less than last year's figure of 1,075 bln tons.
