By KYIV. Nov 22 (Interfax-Ukraine) – In Ukraine, due to weather conditions, the likelihood that the unharvested corn crop will remain overwintering in the fields is increasing, as a result of which a reduction in the supply of a new corn harvest is expected, which will lead to instability in deliveries to ports and an increase in purchase prices for it on the domestic market.
As reported on the website of the electronic grain exchange GrainTrade on Tuesday, after the extension of the Istanbul grain agreements, grain traders resumed purchasing corn in the Black Sea ports of Ukraine at a price of UAH 7,500-7,600 per tonne ($175-205 per tonne), but the pace of supplies remains low, given the cost of its delivery to ports at the level of UAH 1,500-2,000 per tonne and the cost of drying at UAH 2,000-2,500 per tonne.
"The probability that part of the corn in Ukraine will remain in the fields for the winter is growing. Heavy autumn rains slowed down harvesting and increased the moisture content of corn to 28-32%, which, amid high drying costs and low prices for corn, makes harvesting impractical. In November, snow stopped field work altogether, and such weather will continue for at least another two weeks.
In Ukraine, as of November 18, 12.3 million tonnes of corn were harvested from 50% of the planned area (2.1 million hectares), while local analysts estimated its harvest at 27-28 million tonnes, and USDA at 31.5 million tonnes.
"Corn can be harvested in winter or early spring, but subject to frost and lack of snow in the fields. However, Ukrainian farmers have not yet left such large volumes of crops in the fields for the winter, so it is difficult to assess possible losses now. The shortage of new crop offers in the near future will lead to the instability of deliveries to ports and the growth of purchase prices," GrainTrade stated in the report.
According to the exchange, global corn prices remain under pressure from falling oil prices and demand for goods due to a slowdown in the global economy, but may soon resume growth on forecasts of lower production in Ukraine.
