Export of corn stops – Interventional buyout of 50,000 tons for reserves to follow

The export of corn and the growth of prices have been halted by the low water level of the Danube, as ships have trouble entering ports and navigating. Serbia has not yet managed to export the previously sold corn, and Vukosav Sakovic, director of Zita Srbije, said that it could cause the shortage of storage space in the final stages of the harvest.

– If the water level rises, the price will shift up as well. This might happen before the new year. For the time being, the prices are not growing – Sakovic said.

The Government of Serbia will most probably reach the decision on buying out 50,000 tons of mercantile corn for the needs of the Commodity Reserves.

As stated for the Agroservis portal by Zorica Andjelkovic, acting director of the Directorate for Commodity Reserves, according to the proposal, farms may offer up to 100 tons, and cooperatives may offer up to 200 tons of corn at the price of RSD 16.5 per kg. Farmers who opt for this will be provided with around 50 storages for the delivery of corn. As stated, the buyout program will differ from previous ones by excluding the signing of contracts in order of application and considering the totality of offers from all regions instead, to the end of carrying out a more even buyout.

Minister of Agriculture Branislav Nedimovic stated for the portal that the amount of corn was not too different from the current market offer, but that the total stagnation of export might benefit certain farmers.

Experts expect the current price not to go down, but to slightly rise in early 2017 instead. It also remains to be seen whether the entirety of the expected yields can be properly stored. It might turn out that the capacities of stock-keepers authorized by the Commodity Reserves have already been filled with the earlier buyout, which could halt or slow down the buyout of 50,000 tons of corn.

Žita Srbije Beograd

Vlada Republike Srbije

Republička direkcija za robne rezerve Beograd

Ministarstvo poljoprivrede, šumarstva i vodoprivrede Republike Srbije

Commodity Reserves

export of corn

corn

Vukosav Savovic

Zorica Andjelkovic

corn buyout

Branislav Nedimovic