By KYIV. Dec 15 (Interfax-Ukraine) – Corn purchase prices in the ports of Ukraine last week fell by $2-4/tonne to $200-205/tonne (UAH 7,500-7,600/tonne), despite a reduction of a forecast of its harvest this year by 4.5 million tonnes, to 27 million tonnes in the December report by the U.S. Department of Agriculture (USDA).
According to the website of the electronic grain exchange GrainTrade on Wednesday, the decrease in purchase prices is because receiving this crop at port elevators has been stopped due to interruptions in power supply, as well as the fullness of granaries due to untimely arrival of ships caused by the delay in their inspections by Russian inspectors of the Joint Coordination Centre (JCC).
"The delay in ship calls in the Ukrainian Black Sea ports in November and December, as well as missile attacks on energy infrastructure, which caused disruptions and restrictions in the supply of electricity to enterprises, last week stopped the work of some ports and reduced the purchasing activity of exporters," the exchange said.
According to it, even the limited supply of corn from farmers is enough for grain traders, so they do not raise purchase prices, especially amid falling world prices.
GrainTrade clarified that 80 ships have accumulated in the queue to enter the ports of Ukraine, while for the stable operation of export terminals, JCC inspectors need to check at least ten ships daily, but the Russian representatives limit the daily number of checks to five or less.
"The market has not yet reacted to the decline in corn harvest forecasts for Ukraine and the fact that due to bad weather, 35% of crops remain unthreshed. According to the USDA, by December 12, corn in Ukraine was harvested only on 40% of the area, while the Ministry of Agrarian Policy Ukraine reported that as of December 9, some 66% of the area was threshed," GrainTrade said in a statement.
Among other things, the active export of Brazilian corn puts pressure on the prices of American and Ukrainian corn, which is not in sufficient demand, even despite the reduction in its production this season. According to estimates from the Brazilian Ministry of Industry, Foreign Trade and Services, in the marketing year 2022/23 (MY, July-June), corn exports from the country reached 36.2 million tonnes, which is 140% higher than last year’s pace.
