Ukrainian Corn Prices Remain Stable Due to Chinese Demand

Prices for Ukrainian corn remain fairly stable. This is due to strong demand from China, which needs a source of grain supplies. The demand arose against the backdrop of problems with export quotas in Russia, which used to be one of the key suppliers of this product to the Celestial Empire. Currently, the Russian Federation remains uncertain about export quotas, and there is a significant increase in duties.

Export duties in Russia were at a record high. From 22 to 28 December, the amount reached 94 USD per ton of grain. Analysts suggest that the export quota of the Russian Federation will be 11 million tons of grain, of which 8 million tons will be wheat. Because of these reasons, China is showing an increased interest in the Ukrainian grain market in general and corn in particular. The PRC is interested in grain supplies in March and April 2022.

The grain markets have been consolidating in terms of world prices after the sharp decline in prices seen over the past week. A decrease in trading volumes in the second and third decades of December is the norm since trading positions are closed at the end of the year.

In addition to Ukrainian grain, China also purchases feed wheat and barley from France. The French grain harvest in the fall of 2021 pleased with its high quality. In addition, the PRC purchased 132 thousand tons of soybeans from the United States.

However, China's grain imports are declining this year. According to Chinese customs, in November 2021, the country imported 790 thousand tons of corn (-36% compared to November 2020) and 750 thousand tons of wheat (-7.2% compared to November 2020). Only the volumes of barley imports increased (+ 37.3%).