KIEV: Ukrainian corn producers expect lower production and exports than the US Department for Agriculture’s latest World Agricultural Supply and Demand Estimates report for 2017-18 is forecasting.
Difficult weather conditions, expensive internal logistics and price competition from the US and South America have stifled workable margins for Ukrainian corn producers.
The WASDE report estimates 25 million mt of corn production, stable from the previous report, and similar to the 25.2 million mt the Ukrainian Ministry of Agriculture outlined Friday. WASDE puts exports at 20.5 million mt, also stable.
By contrast, many market participants say total production will be 24 million-24.5 million mt. with exports totalling 18 million mt. Poor weather has not only delayed the harvest but has damaged quality and thus the amount which can be commercialized.