Ukraine shifts old-crop corn exports to Danube amid port constraints

Ukraine's unsold old-crop corn is being shipped in spot coaster parcels via Danube ports, with traders increasingly utilizing Izmail due to ongoing restrictions at POC ports and continued uncertainty around vessel availability, market sources said.

The corn had remained unsold and unexported because of the conflict and logistical constraints at POC ports. It is now being marketed through Danube facilities, particularly Izmail, in smaller coaster cargoes.

Traders are focusing on prompt shipment when vessels become available rather than offering forward-loading positions, as vessel availability remains uncertain, sources said.

Several trades for spot shipment were heard during the month from Danube ports on both FOB Izmail and CIF Marmara terms. An FOB trade was heard at $209/metric tons in the second week of September. By the final week, buyers were seen at $208/mt and sellers at $215/mt. CIF Marmara trades for coaster cargoes from Ukrainian Danube ports were reported at $287-$293.50/mt.

A broker who traded FOB Izmail cargoes from Ukraine estimated that around 10,000-20,000 mt of old-crop corn had been sold through the port in coaster cargoes.

Another broker trading on a CIF Marmara basis said demand in the Turkish market was not strong. Importers were buying because the cargoes were available for spot shipment and consisted of old-crop corn offered at a slight discount to prevailing CVB levels.

Despite the progressing harvest in Turkey, the USDA forecasts Turkish corn imports at around 4.5 million mt. Market participants said uncertainty over the availability and export prospects of Ukraine's new crop may have prompted the sudden buying interest in spot shipments.

An importer from Turkey said Turkey's harvest was good but would still leave the country at least 1 million mt short this year, estimating that imports of 2 million-3.5 million mt would be needed before the next harvest.

According to Ukrainian Grain Association data, corn flows from Ukraine rose from 211,105 mt in August to 247,124 mt in September. Total grain flows through Danube ports increased from 564,230 mt in August to 992,207 mt in September.

Platts assessed Ukrainian corn FOB POC at $223/mt and FOB CVB corn at $275/mt on Sept. 30 for loading Oct. 28-Nov. 11.