Corn prices in Ukraine can support the increased demand from China

15.02.2019

China on Thursday resumed its purchases of corn and immediately became interested in Ukrainian grain. Chinese buyers offer 175 $/MT C&F for shipments on FOB-Panamax in April and 181 $/t C&F in may.

It is Expected that after a long period of New year celebrations, China in February-may activates the import of corn, while currently, the world export demand remains low, including in the Argentine corn prices have lowered due to the increase of the crop to a record 46 million tons.

Experts USDA I believe that in 2018/19 MG China imports 5 million tons of corn against 3.46 million tonnes in the previous season.

2017/18 MG China imported over 2.5 million tons of Ukrainian corn, the remaining volumes were supplied from the United States and other countries. Domestic traders are hoping for strong demand from China, as he prefers non-GMO corn.

Last year, China actively sold grain from state reserves. In the SGA, said that sales were more than expected and for 2018 it was sold more than 100 million tons of corn, and the remains of the old stocks will be completely implemented in 2019.

Within the framework of state policy to support farmers, which is now no longer valid, China has accumulated in the state Fund hundreds of millions of tons of corn, the volume of ending stocks of culture in the LCC, the government does not declare it.

It is Expected that after the signing of trade agreements with the US, China will be able to purchase a substantial supply of American corn following the purchase of two state-owned Chinese companies 10 million tons of U.S. soybeans.


GrainTrade

Readers choice: TOP-5 articles of the month by UkrAgroConsult