Ukrainian corn may benefit from US tariffs - Reuters

Ukrainian corn, a key element in the country's grain sector, may benefit from the US tariffs introduced, as it is able to partially replace American corn in the event of retaliatory sanctions, analysts said on Thursday, UNN reports citing Reuters.

Details

US President Donald Trump has announced a minimum tariff of 10% on most imports, as well as significantly higher tariffs on goods from dozens of countries, including China, which is likely to trigger retaliatory measures that could lead to higher prices and lower demand for US goods.

Ukraine is a major global producer and exporter of corn.

"If key importers eventually impose tariffs on American corn, it will open a huge window of opportunity for alternative suppliers," ASAP Agri, a consulting company, said in a statement.

"Ukrainian corn has a strong position here: competitive prices, stable logistics and close ties with the European Union and Asian markets," the statement added.

The consulting company said that Brazil is first in line, but its harvest cannot cover all the demand, "and this is where Ukraine can step in and claim its share".

Another consulting company, Barva Invest, said that Ukraine perceives the US as an export competitor in the grain and oilseed market, rather than a trading partner, and potential retaliatory restrictions by other countries on US exports will have the greatest impact.

She added that the EU, Australia and China are likely to introduce such measures, which will open strategic opportunities for Ukraine, where it will directly compete with the US.

"First of all, it is the market of corn, soybeans and wheat, more indirectly - rapeseed, oil and barley," Barva Invest said in the Telegram messenger.

Addition

Ukraine produced 32 million metric tons of corn in 2023 and 26 million tons in 2024. The country exported almost 30 million tons in the 2023/24 season and is likely to send 22 million tons abroad in 2024/25, according to the UCAB business association.

Farmers, the publication writes, will probably increase the acreage under corn this year, as export prices for corn are favorable.

Ukraine also harvested a record 6.2 million tons of soybeans in 2024, and about half of the volume may be exported this season.

The soybean harvest in Ukraine in 2025 may amount to 5.8 to 6.2 million tons, and the final volume will depend on the presence or absence of rain in May and June.