In Ukraine, corn prices have caught up with milling wheat prices. Why is this so
24 April 09:42
Corn prices in Ukraine continue to rise despite the stabilization of wheat prices and a decline in corn prices on world exchanges. This is reported by the specialized expert publication GrainTrade, "Komersant Ukrainian" informs.
During the week, export prices for corn in the Black Sea ports increased by 2-3 USD/t to 233-236 USD/t or 10900-11000 UAH/t, but traders paid even higher prices for large volumes and fast delivery.
Why prices are rising
According to GrainTrade experts, farmers are actively sowing spring crops, so they hardly make any sales, which leads to the shortage of corn on the market.
In April 1-17, Ukraine exported only 741 thsd tonnes of corn, which is 3.3 times less than in the same period of 2024. In general, the seasonal exports amounted to 17.72 mln tonnes out of the forecasted 22 mln tonnes.
The publication reminds that the maximum demand for Ukrainian corn is observed in February – May, and then corn from South America enters the market.
Wheat prices are in stable balance
Wheat stock prices are falling, but in Ukraine, the shortage of supply is supporting prices.
According to GrainTrade experts, in Ukraine, farmers are holding back wheat sales amid a shortage of precipitation, which keeps demand and prices for food grain high, despite the fact that quotations on world exchanges fell by 1.5-2.8% over the week. This was due to favorable weather in the EU and the US, as well as a decrease in import demand.
During the week in the Black Sea ports, export prices for milling wheat remained at 11000-11100 UAH/t or 234-237 USD/t, and for feed wheat – in the range of 10550-10650 UAH/t or 225-226 USD/t.
The publication reminds that in 2024/25 marketing year Ukraine decreased the export of wheat compared to the same period of the previous season by 11.1% from 15 to 13.49 mln tonnes, in particular, in the period of April 1-17 – from 1.17 mln tonnes to 367 thsd tonnes.
Weather also affects the stock price of soybeans
Heavy precipitation in March and April delayed the harvest of soybeans in Argentina, but the rains have improved the condition of crops, which should increase yields. And drier weather in the coming weeks will help speed up the harvest.
The May futures for soybeans on the Chicago stock exchange last week rose by 4.5%, and this week traded at 382 $/t amid improving weather in Argentina and accelerated sowing in the United States.
In Ukraine, the price of soybeans and its products supports the EU market, but there is increasing competition with cheaper and better quality soybeans and meal from Brazil.
During July 1-April 20, the EU countries increased soybean imports by 9% to 11.22 mln tonnes compared to the same period of the previous season, of which 52% were from the US (50% last year), 33% from Brazil (33%) and 7.9% from Ukraine (11.8%).
