CVB corn prices rise as Black Sea disruptions shift demand to Constanta

Corn prices in the Constanta-Varna-Burgas market have strengthened as Black Sea logistics disruptions pushed Turkish buyers toward Romanian, Serbian and Bulgarian-origin cargoes, market participants said.

Several trades were reported in September for October and December shipments from FOB Constanta-Varna-Burgas, with October-loading new-crop cargoes heard traded at $279-$283/mt, traders said.

Turkey remained the main destination for Handysize corn cargoes traded through Constanta, according to market sources. The country, which has traditionally sourced large volumes of Ukrainian corn, has increased buying from Constanta-Varna-Burgas origins amid continued logistical constraints in the Black Sea.

Export demand has supported Constanta prices, which reached their highest price in three years in September. Platts, part of S&P Global Energy, assessed corn out of Constanta-Varna-Burgas ports FOB at $279/metric ton on Sept. 23, up $38/mt from $241/mt on Aug. 4 and up 23% year over year. Prices reached their highest level of $281/mt on Sept. 15.

Domestic buyers in Romania are also facing firmer replacement costs, with one buyer saying internal CPT prices were almost at parity with export levels.

However, selling by farmers in Romania remained slow despite the stronger export market. One Romanian seller said liquidity was low, while a trader said farmers were not in a rush to sell and preferred to hold corn stocks during the harvest.

Handysize cargoes are mainly moving through Constanta, while Bulgarian ports were more active in coaster-sized shipments. A Bulgaria-based broker said Greece and Italy were the chief destinations for Bulgarian coaster cargoes.

An Italian importer said EU-origin corn from Greece and Bulgaria was offered at around $295-$300/mt CIF east coast Italy or western Italy equivalent, depending on quality specifications.

In Serbia, the corn harvest is more than 80% complete, with market focus on truck exports to neighboring EU and Balkan destinations. A Serbian seller said quality was better than last year, yields were around 5 mt/hectare, and exportable surplus could reach up to 700,000 mt.

The seller estimated that around 350,000 mt could be shipped to former Yugoslav countries and Albania, while the remainder could move to Hungary, Italy or Constanta, depending on quality.

A Romanian broker estimated the country's exportable corn surplus at about 2 million mt. Tight supply, firm export demand and ongoing logistics constraints are expected to continue supporting Constanta-Varna-Burgas corn values, market sources said.