March 2, 2022

Ukraine war pushes demand for EU corn

Livestock feed corn purchases are buying up European Union (EU) supplies to replace Ukraine exports that are blocked due to Russia's invasion, but these buyers may have to look elsewhere soon as the EU is also affected by the loss of Ukrainian supply, Reuters reported.

One trader said the conflict has led to corn consumers and traders purchasing alternative supplies at any price.

Euronext corn futures have soared with its March contract reaching a new record of EUR 333.50 (~US$371.55; EUR 1 = US$1.11) a tonne.

Importers have turned to Bulgaria, Romania, and France to replace Ukrainian corn supplies.

But the EU is mainly a corn importer for its livestock industry, with Ukraine a major supplier. EU agriculture ministers will meet on March 2 to discuss the impact of Russia's invasion into Ukraine.

Another trader said every day Ukraine's commercial ports are blocked, is another 100,000 tonnes of corn missing from global markets.

Traders said buyers might look to the US next, as Brazil's production was affected by drought.

China is said to have several million tonnes of corn from Ukraine booked and due for shipment over the next few months. The second trader said the biggest question is what will China do if its large corn purchases from Ukraine can't be shipped.

-      Reuters