Prices for Ukrainian corn reach $205-$207 per tonne, may grow further in Jan - analysts

MOSCOW. Dec 26 (Interfax) - Ukraine exported nearly 1.7 tonnes of corn as of December 23, 2024, with corn exports expected to top 2 million tonnes by the end of this month, Ukrainian media said, citing the First Ukrainian Agricultural Cooperative (PUSK) expert center under the Ukrainian Agrarian Council.

Corn prices are now stable at $205-$207 per tonne at CPT terminals, but could reach $210-$215 per tonne in January, the center's analysts said. Weather conditions in Brazil and Argentina are the key factor able to influence these prices' further growth.

"The corn market is currently enjoying a kind of 'golden period'. In January, any importer willing to receive shipments will have to approach Ukraine, as American corn has already been sold out. This allows suppliers to set the price as high as they want. But it's important to remember that in February-March we may encounter the pressure of competition for the European market with the arrival of cheaper American corn," they said.

Ukrainian corn remains the key player in the European market, while the U.S. has actively been exporting corn to Latin American countries and Mexico, the experts said. Yet, American corn costs $10 less than Ukrainian corn in the European market.

In January, the market will be sensitive to news about the second harvest sowing campaign in Brazil and the state of crops in Argentina, which is already facing humidity-related problems, the experts said.

"The corn market managed to get through January and February stably and without any serious price fluctuations only twice over the past decade. Therefore, the chance of seeing higher prices during this period is high. And there could be another shortage of corn [in the market] in April-May, which may again create preconditions for price growth," they said.