Ukrainian corn has hit a 20-month high, underpinned by a tight global market and with slow internal logistics continuing to raise costs as exporters struggle to bring corn from farm to port, sources said Tuesday.
The market was assessed at $195.25/mt Monday by S&P Global Platts.
But with Argentinian corn set to return to the market soon, participants said the ceiling was in sight on the return of global competition.
US corn remained globally competitive despite flooding interrupting river logistics Overnight, April prices for the US Gulf Coast were at $186/mt, Argentina at $189.75/mt and Ukraine at $195/mt.
Depending on freight, arbitrages may continue to be workable west into Europe, especially as the EU has removed duty from cereal imports on surging prices.
"The market is high but it is not clear if it will stay at this level. China will dictate whether the market strengthens or weakens," a source said.
Trades were heard done late Monday at $194.50/mt for H2 March-loading and $196/mt April-loading.
Buying interest has been heard at $197/mt for H2 April-loading, up $1/mt day on day while H1 April-loading offers were heard at $198/mt, up $1/mt.
