Ukrainian corn falls below $200/mt to two-year low as logistics costs rise

Ukrainian corn prices have hit a two-year low of $199 per metric ton FOB POC, as logistics expenses and high transport costs impede export flows, according to market sources. This price drop, which fell below the $200 mark on September 3, 2024, is attributed to the exorbitant costs of exporting corn from Ukraine, with transport expenses to Constanta alone reaching close to $100 per metric ton.

Farmers are compelled to reduce their prices to secure sales under these circumstances. The restricted flow of corn from Ukraine's POC ports, due to risks associated with the escalating conflict in the Black Sea, has further dampened export activities. Despite a recent vessel reportedly being sold to Turkey in October, traders remain skeptical of potential deals due to the high freight costs.

Danube ports, especially Izmail, continue to serve as the primary conduit for Ukrainian corn exports, with several coaster cargoes exchanged through FOB and CIF arrangements for spot and one-month-forward deals. Ukrainian agroholdings and exporters are diverting their attention towards higher-value crops in response to the weak domestic corn prices, citing limitations in export routes and the loss-making nature of shipping wheat and corn.