Ukraine’s corn market splinters as bids retreat, high offers persist

Ukraine’s corn market is splintering as some sellers chase down bids to cash in on recent strength, while others hold their ground, market sources said Friday.

“There are two separate markets; one long and catching a huge profit selling between $205-$210/mt range," one market source said, describing the other as sellers who are still trying to sell at domestic price levels, plus fobbing costs to over at around $214-$215/mt.

“I believe the market is squeezing down all those who bought above $200/mt,” a broker source said, with no one prepared to pay the higher prices.

CPT prices, domestic values covering carriage paid to a specific place, are said to be bid and offered at $196-$198/mt Friday, although some offers remain as high as $223/mt.

Domestic prices are a key factor in determining FOB export values.

Corn prices have surged recently while Ukraine has also seen support from EU corn buying and good demand to China, while farmers have been prepared to hunker down and hold on to corn until better prices have come.

That has seen values firm to surpass feed wheat and some milling wheats, approaching parity with 12.5% wheat prices as the Black Sea complex saw prices converge.

Differences in cargo sizes and specifications for China-bound volumes has further muddied the price picture as additional premiums stack up.

Bids for April loading powered through to the $208/mt level this week, according to some sources, at which point offers have started to cap prices, and bids back off as selling takes place, with a trade for April heard done at $205.75/mt Thursday, and bids today at $206/mt.

“The trade yesterday at $205.75 is a good example – at a certain stage, you have to materialise a profit in selling,” the first source said.