When it comes to the Russian invasion of Ukraine, there’s one initiative allowing the safe export of grain and foodstuff from Ukraine: The Black Sea Initiative. The Black Sea Initiative has allowed for the safe export of over 30 million metric tons of grain and foodstuffs from Ukraine since the agreement in July 2022, with 50% of the total grain and foodstuff cargo exported being corn. According to the National Corn Growers Association (NCGA), without an extension of the initiative, Ukraine’s ability to export corn and other grains would be restricted.
In May’s World Agriculture Supply & Demand Estimates (WASDE), USDA projects Ukraine will produce 22 million metric tons of corn — an 18.5% drop from last year’s already reduced level. In addition, the projection for exports is 16.5 million metric tons, or 75% of production.
What does this mean for U.S. corn growers?
The NCGA says that with a wide range of possible corn production levels in Ukraine, coupled with a wide range of possible export levels for the nation and the unknown fate of the Black Sea Grain Deal, there’s a lot of uncertainly in the corn market for 2023-2024. The association believes U.S. farmers may be expected to fill the void left by the invasion of Ukraine.
Make sure to visit the full release put out by the NCGA.
