Ukraine's corn prices have reached their lowest level in the past two years, hitting $199 per ton (FOB POC) on November 2. This price decrease, which is a drop of $24 per ton from $223 on October 2, has occurred due to high transportation costs and logistical constraints in exporting this product.
Logistical Challenges and Transportation Costs
Traders noted that logistics costs for exporting Ukrainian corn through the Constanta port have reached nearly $100 per ton. This has led farmers to lower their prices to secure sales. According to a seller based in Kyiv, "Ukrainian farmers may sell at lower prices because logistics to CVB from Ukraine is also costly."
Read more: ONE announced profitability increase through optimizing public use
Export Restrictions and Market Changes
Export flows of corn from Ukrainian POC ports have been severely affected by security tensions in the Black Sea that began in July. However, reports of a sale of a vessel to Turkey in October have emerged. A seller based in Kyiv stated, "There are rumors that they claimed to have sold a Handy vessel for corn exports to Marmara from POC." Several other market participants also confirmed this deal.
Meanwhile, Danube ports, especially Izmail, have remained the main export route for Ukrainian corn. Several shipments from Izmail have been sold on FOB and CIF terms for immediate and one-month transport. The latest offered prices for immediate shipments in Izmail are reported at $170 and $175 per ton, respectively.
Additionally, some of the largest agricultural holdings and exporters in Ukraine have shifted their focus to higher-value products due to weak domestic corn prices. One Ukrainian corn producer stated, "Corn is not on the table now. We have restrictions on export routes. We are using this capacity to maximize our liquidity and send higher-value products."
Ultimately, given the high transportation costs, selling corn and wheat is currently considered a loss-making activity.
Read more: Iran and China Trade and Investment Conference Focused on Export Development and Trade Corridors · Ukraine's Attack on the Lukoil Refinery in Nizhny Novgorod
