Export of Ukrainian corn reaches 2.2 mln tonnes in June, to drop in anticipation of new harvest in July-August - analysts

MOSCOW. June 26 (Interfax) - As of June 22, Ukraine has exported 2.2 million tonnes of corn, which indicates a high level of activity on the market, Ukrainian media outlets said, citing a statement of the analytical cooperative operating under auspices of Ukrainian Agri Council.

Analysts have forecasted that June would be the most productive month for export, but the parameters could considerably drop in July-August because of the market's switching to a new harvest.

"The global environment is unfavorable for Ukrainian corn. Although it is still in demand on the Italian market, competitiveness is declining due to pricing. For example, Argentine corn is sold at $212-$213 per tonne on the Italian market, which is about the same level as Ukrainian corn. At the same time, Argentine corn is several dollars cheaper in Spain, making it more attractive to buyers. In such conditions, Ukrainian traders are not in a hurry to sell their existing stocks, as their volume is limited," the analytical cooperative said.

The corn market is entering its midseason, and prices are expected to stabilize in the next few weeks, analysts said.

"If there is demand, the conditional prices for corn may fluctuate in the range of $172-$174 per tonne. On average, the price on CPT basis will be around $170 per tonne in the coming weeks," the analytical cooperative said.