Source: Ukragroconsult (Ukraine)
The government announced in its official gazette on October 10 that corn importers to Turkey will pay a lower duty rate of 5% for the next million tons of feed grain imported into the country, easing the standard rate of 130% by the end of the year. The quotas will be shared between feed manufacturers and starch/glucose producers. Previously, the government had temporarily reduced the import duty to zero in September 2021. According to market sources, the duty will be raised again to 130% after December 31 once the agreed quantity is reached.
Recently, corn prices in Turkey have risen sharply due to strong demand from various sectors. According to market sources, the decision was necessary to stabilize supply as the price hike has hampered imports. A Turkish trader said, “We generally import corn, but now, after these prices, we have stopped.”
Following the announcement, Ukrainian traders noted increased interest from Turkish buyers. The interest in spot deliveries was evident early in the day, when buyers were bidding USD 240 to 245/ton for rusty corn, while sellers were asking USD 246 to 250. Turkey has become a major market for Ukrainian corn and last week offered $239/ton for October-November delivery on CIF terms. However, the tariff cut could force buyers to lower their bids, putting pressure on sellers to remain competitive and potentially lowering prices in the Ukrainian market.
Slight price declines were seen as buyers lowered their bids and sellers adjusted their offers. Competitive prices for CIF Marmara mobile corn were noted at $240/ton for November delivery. Platts assessed Ukrainian corn for FOB POC at USD 218/ton on October 9.
The domestic market is stabilizing as local corn prices are falling. A Turkish trader noted that domestic corn is getting cheaper. Turkey expects the second corn crop to hit the market by November, further increasing availability and lowering prices.
According to market participants, lower import duties are likely to increase trade flows to Turkey in the coming days, allowing buyers to benefit from lower prices.