European corn prices rise on freight, fertilizer cost pressures

European corn prices have risen in recent days amid increased freight and fertilizer costs, affecting the global market, according to the European traders.

Platts, part of S&P Global Energy, assessed EXW Tarragona Corn at Eur226/metric ton for the April-May period April 28, up Eur2.50/mt from the beginning of the week, with offers between Eur229-227/mt and bids at Eur225/mt. Corn prices remained stable from April 14 to April 23, only to surge on April 24, according to Spanish traders.

The increase comes despite subdued demand across Europe, with market participants attributing the move to supply-side pressures rather than consumption patterns.

This price increase is not driven by demand but is attributed to the ongoing war, according to a trader in Spain.

Another Spanish trader attributed the uptick to rising US sourcing costs and freight charges.

The trader added that because Ukraine's corn is now more costly than other sources, buyers are favoring cheaper corn from the US and other origins. Based on a freight list from Ukraine to Spain and Italy, the rates were higher at $29-$30/mt and $27-$28/mt, respectively, last week.

An Italian trader confirmed the upward trend, citing global fertilizer price increases as a key factor.

The euro-dollar exchange rate is also not favoring the market, so altogether the market sentiment is bullish at the moment, a third Spanish trader said.

According to European Commission data, the EU imported 4.65 million mt from Ukraine, followed by the US and Brazil, which contributed 3.78 million mt and 3.04 million mt, respectively.

Origin market sentiment

Brazil's winter corn market sentiment is cautious amid concerns about planting outside the optimal period, especially amid May's typically drier conditions, which pose yield risks, a broker said.

In the state of Goiás, producers have opted to plant sorghum in some areas that would have been designated for winter corn—areas that would have been sown outside the ideal window—because sorghum is a less demanding crop, a cooperative said.

However, overall, corn crop conditions remain positive, with Mato Grosso, the leading producer, reporting good growth. The forecast by S&P Global Energy CERA for Brazil's 2025-26 season is 142.3 million mt, up from 141.0 million the previous year.

According to a Brazil-based trader, high fertilizer prices haven't yet impacted this year's corn output, thanks to early purchasing by producers amid the Middle East conflict. Cost pressures are expected to influence the next soybean crop, still to be planted.

Platts assessed the corn FOB Santos price for August shipment at $230.50/mt on April 28.

Ukraine corn prices rose last week amid the Turkish government's introduction of an import quota. Buyers from Turkey showed a willingness to pay higher prices, making Ukrainian corn uncompetitive with other destinations, particularly Europe.

Platts assessed Ukrainian FOB POC corn up $1.5/mt at $234.5/mt on April 28, up from $227/mt on April 17.

However, apart from Turkey, the Italian market has also shown slight buying interest, as Ukraine is the primary origin for the Italian market, sellers from Ukraine said.

"Turkey is the major destination now, but Italy is not that far away," a seller from Ukraine said.