Ukrainian Farmers Plan to Reduce Corn Planting Areas Next Year Due to Low Profitability

Ukrainian agricultural producers are seriously considering reducing the area planted with corn next production season. The primary drivers behind this prospective shift are the high cost of grain drying and the overall low profitability associated with cultivating this crop, according to market analysts citing ongoing industry monitoring.

Over the past week, feed corn prices continued their downward trajectory. This trend unfolded against the backdrop of steady progress in the harvesting campaign across various regions of the country, compounded by subdued demand from the majority of buyers and corresponding negative movements in the export market.

According to analysts, Ukrainian farmers have shown little urgency in selling their harvested grain, viewing prevailing price levels as unacceptably low. Meanwhile, most buyers and traders have limited their corn purchases strictly to immediate necessity, anticipating further price corrections downward.

Current indicative bid prices for feed corn on the domestic market stand at UAH 5,200 to 6,800 per tonne on CPT terms. On the export front, CPT-port prices are pegged between $150 and $159 per tonne, with peak pricing offered by only a select few companies.

It is worth noting that the corn harvesting campaign in Ukraine faces additional hurdles. As of late October, corn had been harvested from approximately 20% of the targeted area. While the baseline harvest forecast remains at 30 million tonnes, field reports from numerous regions indicate that actual yields are turning out significantly lower than initial projections.