Cabinet Decree on grains export quotas raising didn’t succeed to support food wheat market. Within this week food wheat market was characterized with lowering trend.
Food wheat was purchased mainly by processors who needed exhausted reserves replenishing; some processors slightly lowered their purchase prices. Traders were ready to purchase wheat at prices unacceptably low for grain holders — UAH1,200–1,250 per MT (food wheat)/UAH1,120–1,150 per MT (feed wheat).
Government faced growing criticism within this week. UAC/UGA representatives declared they were ready to launch protest actions against grains export quoting; representatives affirmed elevators being overfilled with grains would negatively affect harvesting campaign.
Barley market trade operations activity slightly raised as export-orientated companies returned to market (mainly due to barley export quota having had been raised for additional 500,000 MT). Grains market waited for this Government decision since long: most market participants affirmed there was no threat to Ukraine food security any more and, besides, this MY was nearing its end. What’s more, if Ukrainian/global barley crop appears record high this year resulting in grains prices significant decline (which has started already now), agrarians would bear huge losses. Barley market, now being more protected/stable as wheat or maize markets, is sure to become vulnerable to abovementioned negative factors and slacken its positions.
As of this week results, feed maize market proved to be most stable among other grains. Exporters purchase prices didn’t change. As to experts, maize internal market prices will continue falling with fall depending on global market conjuncture and market operators grains reserves.
EXPORT
Barley
Within this week feed barley purchase prices ranged within UAH1,200–1,270 per MT (EXW-ex-elevator, depending on regions/contract conditions). US$ purchase prices fluctuated within US$260–270 per MT (FOB).
Wheat
Feed wheat prices were UAH1,130–1,230 per MT (EXW-ex-elevator).
Feed wheat ports US$ purchase prices ranged within US$260–270 per MT (CPT port).
If wheat export were free, feed wheat offer prices would possibly be US$270–280 per MT (FOB).
4 class food wheat US$ prices (taking into account global market prices current conjuncture) equaled to US$290–300 per MT (CPT port).
Maize
Traders purchased feed maize at UAH1,220–1,300 per MT (EXW-ex-elevator).
Feed maize US$ prices were " US$265–275 per MT (CPT port)/US$275–285 (FOB).
Processors Activity
Flour milling companies didn’t change much their functioning within this week. Companies made just a few purchases in small lots at prices slightly down against previous week, — what is to be explained mainly with flour products low demand (indirectly resulting in flour millers resources need decline). Grain holders, on their part, couldn’t sell off their reserves and therefore hoped for grains export quoting abolishment.
Some mixed feeds producers raised feed barley purchase prices by UAH30–70 per MT (6 class wheat — UAH10–20 per MT) due to traders having had activated feed grains purchasing. Market operators say prices will continue growing in near future.
Processed Products
As earlier, this week flour market situation remained tense due to flour products offer exceeded demand. Under these conditions flour millers had to look for other sale channels, — mainly on global market. As a result, this year Apr flour export equaled to 24,400 MT (this year Jan-Apr — 56,700 MT), what proved of Ukrainian flour being highly demanded on global market and flour export operations high profitability. Within this year Apr, number of big importers has as well much grown: Georgia (6,350 MT), Moldova (4,300 MT) and Syria (2,400 MT) have been joined by Azerbaijan (3,000 MT), UAE (2,700 MT) and Armenia (1,900 MT).
Upon whole, most regions flour millers admitted this week flour sale rates were low. Consumers demand was up only in central regions.
Groats products demand remained extremely low within this week, what is to be explained with warm spring weather alongside with consumers having had changed their preferences due to population bakery products consumption lowering.
