The global and domestic corn markets are showing a rise in prices due to the problems of growing this crop in South America, according to the analytical cooperative Pusk, created within the framework of the All-Ukrainian Agrarian Council (AAC).
“Today, the situation on the corn market is determined by fundamental factors: problems in South America, which are the main suppliers of corn. Argentina had significant problems this year: droughts and pest damage. Brazil had excessive rainfall. These phenomena reduce the supply of corn in the world. The problems in South America are forcing many buyers to buy corn, and this is driving the market up,” the analysts explained.
In their opinion, buyers realize that in the new season key exporters will reduce production. In addition, the parallel rise in wheat prices also contributes to the rise in corn prices.
Experts expect Ukraine’s corn exports to reach 3 million tons in May. As of May 13, Ukraine has already exported 1.25 million tons of corn.
By next week, the conditional prices for Ukrainian corn will be about $170-178/ton on CPT deep water basis, $178-190/ton on CPT shallow water basis, $190-200/ton on DAP/CIF Constanta basis, $165-175/ton on DAP Vadul basis, according to Pusk.
