Ukrainian grains terminals are prioritizing corn over other grains as the corn harvest keeps apace, adding length to the market, sources said.
With limited storage capacity and limited buying interest, prices have been subdued.
The additional length generated by the corn harvest has found it difficult to make its way out of the country as key destinations like Spain and Egypt are well covered at the moment.
As fundamentals soften, prices for Ukrainian corn FOB Handysize Panamax port loading now hover at a 12-month low at $163/mt, as assessed by S&P Global Platts Wednesday.
But sources say prices have further potential to slide, with the possibility they cold hit all-time lows.
"We are heading into a very bearish market," a source said, adding that prices could remain close or below $160/mt for some time.
At present, there are lots of "papers in the market and not many flats," a source said of trading between trading houses and not to destination.
With wheat liquidity growing thinner due to strong export campaign, terminals will likely continue to focus heavily on the corn harvest, which could see further downside, at least in the short term.
