Iran replacing China as a market for Ukrainian corn exports


For Ukrainian corn, the season 2016/17 features primarily growth of competition in the world market due to substantially increased export availabilities of corn in Ukraine and major global growers such as the USA, Argentina and Brazil.

The factor of a corn grain harvest surge in South America will begin exerting a strong influence in the spring of 2017, when Argentine and Brazilian new-crop corn will start arriving in the world market, UkrAgroConsult notes.

For now, Ukraine is actively supplying corn both to traditional markets and new ones. According to UkrAgroConsult estimates, Ukraine exported corn in the four months of the current season roughly up 12-13% year-on-year.

Some switch in the destination markets can be pointed out among key changes in the above-mentioned period compared to last season.

While Ukrainian corn exports to the European Union market lag behind, Ukraine is actively supplying corn to the market of Iran.

According to Marina Sych, grain market analyst of UkrAgroConsult, Iran is quite likely to replace China as a destination for Ukrainian corn exports this season. China is known to have slashed imports because of high grain inventories in the country.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.



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