Ukraine corn price hits 3-month highest -27.01.2022
Export quotations for Ukrainian corn have rallied to their highest level since November 2021 amid an increase in external demand and obligations to cover the previously signed contracts, Refinitiv Agriculture reports.
The outlook for lower corn yields in Latin America and the dynamics of oil and wheat prices are also in the spotlight, traders say.
Refinitiv monitoring reveals that Ukraine's corn export quotations have risen 5 USD/t a week to 278-284 USD/t FOB for the February-March loading period, while CPT prices have risen 7 USD/t a week to 272-277 USD/t for February shipment.
"Liquidity in the Ukrainian corn market has increased considerably this week. Stable export demand and fulfilment of obligations under previously signed contracts, along with rising purchase prices, have prompted farmers to sell grain. Traders state that sales volumes on the domestic market often do not match demand, which is the reason for the price increase," the message reads.
The pressure on the Ukrainian currency is persisting due to geopolitical processes in the Black Sea region. As of January 27, the hryvnya exchange rate has made it to 29 hryvnyas per dollar, which is the lowest value since 2018, providing additional support for price hikes.
Corn export from Ukraine as of January 26 made up 14.3 mln t, 29% up YoY.