Ukrainian Grain Market
AGRO PERSPECTIVE «Ukrainian Grain & Oilseed Market » January 18-24, 20008 # 53 (156)
Within this week food wheat prices have grown once again, due to exporters/flour milling integrated plants active demand.
Ukrainian Grain Market
Wheat was most intensively purchased by eastern/southern regions companies which experienced grains drastic shortage due to agricultural producers low sales. Exporters activity was various: part of them continued intensive wheat purchasing, while others kept neutral in anticipation of export quotas distribution results.
Food wheat purchase prices were declared UAH1,350–1,390 per MT (3 class wheat, EXW-ex-elevator) and UAH1,280–1,320 per MT (4 class wheat, EXW-ex-elevator).
Feed wheat market also followed positive trend; this market sector prices growth was highest among other grains sectors. As earlier, agrarians restricted feed wheat sales in anticipation of higher sale prices. Within this week some agrarians have offered feed wheat at over UAH1,220 per MT (EXW).
Within this week feed barley purchase prices remained mainly unchanged as of previous (though prices upper margins were slightly up). As of now, feed barley prices are very high, — what leads to main consumers demand fall (traders have big grains reserves, much over export quota volume; mixed feeds plants aren’t eager to buy expensive barley as there are less expensive maize offers on market).
Feed maize market sector prices were also much up. This sector tendencies were influenced by Government officials declarations on maize export quotas possible enlarging since this year Apr 1.
EXPORT
Feed barley purchase prices were UAH1,190–1,280 per MT (EXW-ex-elevator, depending on regions/companies). If barley export were free, feed barley US$ purchase prices would range within US$320–330 per MT (FOB)/US$310–320 per MT (CPT port).
Feed wheat prices have much grown, — up to 1,120–1,170 per MT (EXW-ex-elevator).
Feed wheat ports US$ purchase prices were US$290–300 per MT (CPT port).
FOB offer prices fluctuated within US$300–310 per MT (FOB).
4 class food wheat US$ prices could (taking into account global market prices current conjuncture) equal to US$330–340 per MT (CPT port).
Maize
Traders purchased feed maize at UAH1,120–1,170 per MT (EXW-ex-elevator). Feed maize US$ prices were " US$270–280 per MT (CPT port)/US$280–290 (FOB).
Processors Activity
As of this week results, part processors continued raising food/feed wheat purchase prices. Agricultural producers continued boosting grains sale prices due to exporters activity growth/flour millers stably high demand.
Those agrarians which needed financial means have sold earlier planned wheat lots and now keep to wait-and-see policy, to start new sales not until Mar.
Market participants admit those grain holders who had given their wheat (even despite high purchase prices) for mortgage storage to Agrarian Fund now plan to buy it back in order to sell within this year spring at higher prices.
Taking into account wheat high export demand as well as export rates having remained low since this MY beginning, agricultural producers expect that within this year 2-d quarter wheat prices will boost due to limited offer.
Processed Products
Flour products market retained previous week tendencies: market continued getting activated/entering high trade activity state. As expected, bakers flour reserves started gradually lowering within this week, resulting in market demand growth.
As of now, main market consumers don’t show any deep interest in flour purchases; however, consumers interest is expected to get somewhat activated end Jan-early Feb.
Within this week flour market was greatly influenced by State Committee for Material Reserves (State Reserve) and State-owned Joint Stock Company Bread of Ukraine activity. State started allocating additional flour lots to bakeries due to most regions bakery products sale prices growth: thus, monthly flour allocations to Dnipropetrivsk region bakeries will equal to 3,000 MT.
Upon whole, market prices conjuncture remained stable (though some integrated plants have raised their sale prices due to grains high purchase prices).
As earlier, rye flour prices continued growing. Prices reached UAH1,850 per MT due to limited offer as well as 2007 rye crop/quality significant decline.
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