May 6, 2013

Recovery seen in Romania's wholesale corn prices

The price of Romanian corn on the domestic wholesale market recovered in the past weeks to €237 (US$311) per tonne excluding VAT- at the gate of the silo in the region of Muntenia.

A couple of weeks earlier, before the price bottomed out, traders were commenting about the sharp plunge of corn prices, some quoting a (unrealistic) 30% decline year-to-date (YTD). Actually, the price has meanwhile recovered.

Based on the yields estimated by the latest MARS (Mariners' Alerting and Reporting Scheme) report, Romania is expected to produce 9 million tonnes of corn this year - up 50% on-year, strengthening its export potential. With the effect of the aflatoxin scandal dissipated, corn producers and traders will be in position to take full advantage of the large harvests - subject to weather conditions in the coming summer months.