Purchase of corn in Ukraine under loan-for-grain deal weakens position of the United States, the traditional supplier of corn to the Chinese market.

Active purchases of Ukrainian corn by China put additional pressure on the price of American corn. U.S. corn futures fell on the Chicago Mercantile Exchange (CBOT) and are trading near a six-week low.

Some of the Ukraine cargoes for April-May shipment were struck at about 1 500 Yuan ($240) per ton, C&F basis. The price of corn with domestic origin at Shenzhen port is quoted at 2 490 Yuan($398) per ton. U.S. corn is quoted about 80 Yuan ($13) per ton cheaper than Ukraine corn.

It is expected that as the exhaustion of stocks and rising prices for corn, China will continue to purchase Ukrainian grain.

Last year Ukraine shipped one million tons of corn to China under a loan-for-grain deal, the loan totaled to $1.5 billion. In the current year Ukraine hopes to double the volume.

In January, Ukraine supplied China with 470.047 thousand tons corn, the U.S. — 20.4 thousand tons only.

Traders said U.S. corn has become less attractive to Chinese importers, as it may contain genetically modified corn containing Agrisure Duracade trait. This line is not included in the list of GM crops allowed to be imported into China.