Ukrainian corn gains advantage on Egyptian route

The reduction in offers for small lots to $219–220/t FOB POC has restored the competitiveness of Ukrainian corn on the Egyptian market.

At the beginning of the week, offers for Ukrainian corn on a FOB POC basis dropped to $219–220/t. Against this background, traders expect a revival of demand from Egypt, reports Atria Brokers broker Darya Marchenko, writes Latifundist.

“Offers to Egypt are now around $243/t CIF, which makes Ukrainian corn attractive again. Recently, deals have even been concluded at a price of $240–242/t CIF Egypt for deliveries in December,” Marchenko notes.

For comparison, “panamax” shipments of Brazilian corn for January are offered at around $257/t CIF Egypt. Thus, Ukrainian goods have a price advantage of $14–17/t over Brazilian goods in the nearest supply windows.

However, according to Marchenko, many Egyptian importers remain cautious, expecting even lower prices in January.

Also, the day before, USM informed that the main buyers of Ukrainian barley in the new season were China, Turkey and Libya.