19.01.2024 15:04

World corn prices are at a three-year low — Spike Brokers

Significant global corn reserves and expectations of a record harvest from South America are putting substantial pressure on prices. Buyers are adopting a wait-and-see strategy for further price reductions by sellers to find outlets for their surpluses. Prices have dropped to a three-year low.

This was reported by Spike Brokers.

Prices in the end markets of North Africa, Spain, Italy, and the Middle East have fallen to $10/ton. Sellers are struggling to find buyers on the global market, and a price inversion is observed (where future prices are lower than current ones).

Prices for Ukrainian corn towards the Black Sea ports have decreased by $5-7/ton.

The latest buyer indications:

DAP Ukraine (Odessa) ~$145-150/ton,
FCA Ukraine (border) ~€140-145/ton,
DAP Italy (north) ~€200-205/ton,
CIF Italy (port) ~$215-217/ton,
CIF Spain (port) ~$216-218/ton,
CIF Egypt (port) ~$215-216/ton,
CIF China (port) ~$238-243/ton.

USDA analysts have increased their estimate of US corn production to 389.69 million tons (an increase of 2.72 million tons). The export forecast remains unchanged at 53.34 million tons. Ending stocks are expected to be at 54.91 million tons (an increase of 0.79 million tons).