Within this week grains purchasers activity continued slackening. Activity weakening is to be explained with, firstly, global market low prices/demand absence. As of this week, traders took short positions, but real purchasers were extremely difficult to be found.
Second reason to explain purchasers activity weakening was large-scale harvesting campaign time approaching, − so exporters tried to conclude forward contracts with farmers to purchase grains literally on «from grain combine» basis. However, many agricultural producers (and even experts) were convinced grains prices might begin growing since mid Aug-early Sept (when big global grains tenders will start) and therefore concluded forward contracts only for part of future crop grains.
As of this week, feed wheat/feed barley purchase prices decline was lowest among all other grains. Traders admit within this week global market wasn’t much interested in Ukrainian feed wheat/feed barley. Traders suppose global market interest will remain low until Aug owing to European countries being sufficiently provided with their own reserves and due to Ukrainian farmers having recently launched on domestic market previous crop grains big lots after having been withholding sales within sale prices growth period (and, finally, thus having missed possibility to sale their grains at top prices, − what is sure to accelerate prices rates decline).
As of this week, exporters interest in feed maize purchases remained slack; besides, feed maize offer was practically zero low. Processing companies (whose requirement to feed maize quality was relatively low) appeared feed maize main purchasers.
EXPORT
Barley
Within this week feed barley purchase prices ranged within UAH820–880 per MT (EXW-ex-elevator, southern regions)/UAH760–850 per MT (EXW-ex-elevator, other regions).
US$ purchase prices were US$135–145 per MT (FOB, small ports) and US$140–150 per MT (FOB, big ports: Pivdenniy, Illichivskiy).
Wheat
Feed wheat purchase prices have got fixed UAH830–980 per MT (EXW-ex-elevator, depending on regions/contract conditions).
Feed wheat ports US$ purchase prices ranged within US$120–130 per MT (CPT port, small ports) and US$135–148 per MT (CPT port, big ports: Pivdenniy, Illichivskiy).
Feed wheat offer prices were US$135–160 per MT (FOB, depending on shipper/shipping port).
4 and 3 classes food wheat US$ prices (if global market prices conjuncture is taken into consideration) were correspondingly US$185–198 per MT (FOB Black Sea ports) and US$190–202 per MT (FOB Black Sea ports).
Maize
Traders were ready to purchase feed maize at UAH900–1,070 per MT (EXW-ex-elevator, depending on regions/contract conditions).
Feed maize US$ prices fluctuated within US$158–175 per MT (FOB).
Processors Activity
As of this week, flour millers grains purchasing activity remained rather low. Experts admit agricultural producers have significantly raised previous crop wheat offer due to market prices lowering tendency and owing to big producers needing to empty their warehouses in order to place new crop wheat. Within this week most flour millers were busy processing earlier accumulated reserves and produced just small flour lots up to market demand.
As of this week, part flour millers have already suspended functioning in order to pass repairs/fumigation procedures (while others planned to do that only since early Jul).
Within this week spring grains harvesting rates were gradually growing up in AR of the Crimea, Odesa region, Myckolayiv region and Kherson region.
Processed Products
As of this week, wheat flour market conjuncture remained unchanged against previous week. Flour demand (esp. 1 grade flour) remained extremely low. Some flour millers admitted they will be able to reduce flour cost price since new season beginning due to flour quality wheat prices decline.
