Continuation of the export corridor pressures corn prices

December 2, 2022

1 mins read

The CBOT corn futures DEC-22 contract price was at 662 cents/56 bushel at the time of writing (1 st December), down 0.18% week-on-week. The corn market was pressured this week by the grain corridor’s renewal and improved weather conditions in South America.

Corn in Ukraine is officially harvested at 50%. It has been reported that the grain is not such good quality, and the moisture level is much higher than it should be, around 26- 28%, according to a Mintec source. According to a Mintec source, who also noted, “Now that the cold weather is approaching and with the snow, the corn quality will be poor. There will be many damaged kernels, which means much of this will be used for ethanol production. Also, if the corn is ‘wet’, it will not be suitable for transportation because it will melt, so you have to dry this corn. Based on the current price, it costs more than USD 50 per metric tonne to dry it, and with the current prices and production costs, it’s too expensive for Ukrainian farmers”. Much of the grain supply is going via the Polish border due to inefficiencies at the ports with vessel inspections.

According to the National Drought Monitoring Board, drought in Argentina has hit the most important corn growing regions, and about 22 million hectares have been severely affected. The province of Buenos Aires is most severely impacted. The drought has caused initial delays in corn planting, and currently, only 24% has been completed, 37% down from a 5-year average (as of 29th November). According to weather reports, scattered rain showers are expected, but analysts do not believe these will be sufficient to recover soil moisture.

Topics: Grains & Feed
Zanna Aleksahhina
Zanna Aleksahhina

/You May Also Like

Featured Image
Mintec’s US Easter Index measures price fluctuations across key food...
Featured Image
Introduction Mintec’s European Easter Index measures price...
PLATFORM

Mintec Analytics

The spend intelligence you need, about the food products you buy, all in one place. 

FREE TRIAL