Ukrainian corn prices see hike on Chinese demand for ethanol
Ukrainian corn has risen back above $200/mt as buyers from China resurfaced on demand for ethanol production while buyers from Egypt were looking to build stocks ahead of Ramadan, sources say.
Ukrainian corn rose to $200.50/mt Tuesday, up $2.75 day on day, S&P Global Platts data showed. It hit a 20-month high at $209/mt on March 12.
Two Panamax port FOB Handysize trades were said by sources to have been done this week for April or H2 April-loading at $196/mt and $199.50/mt.
Read alsoUkrainian agrarians already exported 23 mln tonnes of grainsPrior to that, trading outside of term contracts was last done on March 14 for May at $210/mt.
Seasonally, high quality corn in Ukraine becomes difficult to source around late April and May as exporters reach the end of the exporting campaign and focus on new crop sowings.
With China, Egypt and Iran all expected to purchase more before the end of the campaign and drought still lingering in Argentina, Ukrainian corn could have further upside.
Originations with lower values such as Argentina and the U.S. had become less competitive recently on bullish data and the reappearance of prompt length in Ukraine.