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Traders are willing to pay a premium price for Ukrainian corn - Refinitiv

21.05.2020

Traders are willing to pay a premium price for Ukrainian corn - Refinitiv

Last week, the Ukrainian corn market received little support from several deals for deliveries to China, as well as the Turkish tender.

About this writes Refinitiv Agriculture in Telegram.

According to market operators, a small purchasing activity on the foreign market supported FOB prices for spot deliveries, while purchasing prices on the basis of the CPT-port were almost equal to them.

“Ukrainian corn is the most likely source of supplies within the framework of the Turkish tender, since there are practically no other corn offers in the Black Sea region, several surveyed traders noted at once. Corn of Russian origin is no longer taken into account due to the lack of export outside the quota. Exporters expect Turkey to resume maize purchases amid strong domestic demand for feed grain and hope for higher price levels, ”analysts said.

On the basis of SRT-Odessa, export quotations for corn continued to strengthen and as a result the price reached the level of $ 169-172 per ton, which is close to the price level on the basis of FOB. Traders also explain higher prices by the need for purchases for export programs to China. With such purchases, traders are willing to pay a premium price for corn.

“Most likely, shorts are closing,” one Ukrainian trader explains such high prices.

Some exporters also work in the Iranian direction, which may also be the reason for such high corn prices, adds another.

Recall that export quotes for sunflower oil from Ukraine rose to a 3-month high and exceeded $ 730 per ton on the basis of FOB Chernomorsk.

Information from latifundist.com