Within reporting week Ukrainian grains market followed last week tendencies: high export demand and agrarians domestic low offer. Within this week grains trade has appeared to be very slack against last few seasons similar.
As earlier, within this week feed barley trade segment remained most active among all other grains. It is to be admitted, feed barley remains so far the only kind of grains which is sold off by agricultural producers. Feed barley successful sales are to be explained with following reasons: first, there is no sense for agrarians to store feed barley within long-term period (3–6 months) as sales possible profits are certain to be partially liquidated by storage expenditures. Second, though some agrarians are now well-provided with financial means, most of them still need circulating assets to continue harvesting campaign and pay loans. Third, agrarians are prompted to make feed barley sales by mass media often repeating Ministry of Agrarian Policy and Food (as well as some other public organizations) recommendations to keep from grains (esp. wheat) sales: Ministry analysts recommend to agrarians to abstain from grains sales at prices which so far remain low due to season beginning and wait until market situation improving. Fourth, feed barley sales are backed up by global/domestic markets current advantageous prices conjuncture: as of now, feed barley cultivation cost makes it possible for agrarians to reach feed barley production positive profitability (as feed barley is spring grain characterized with relatively short growth period and small production expenditures against other grains); at same time, now traders fix food wheat purchase prices which (as to most experts estimation) permit agrarians to sell feed wheat just on break-even level.
Within previous week export-oriented feed barley prices started growing in ports. As of this week, export-targeted feed barley prices have started boosting again mainly due to global market prices (CIF Saudi Arabia) growth and sea freight rates last few weeks lowering.
Within this week wheat prices remained unchanged against previous week as traders demand was rather low and RF wheat export prices appeared to be more advantageous (if estimated from importers viewpoint). As of this week, traders have concluded just small wheat export contracts number. It is to be admitted, this week wheat low purchase prices have been motivated by seasonal factors: harvest starting, last year wheat crop high domestic transition reserves and global prices unfavorable conjunction.
In meanwhile, agrarians argue that new crop wheat is mainly A group food wheat, what means that its price simply mustn’t be down against feed wheat. As earlier reported, within this week spread between traders and processors feed wheat purchase prices ranged within UAH250–350 per MT.
As of this week, feed maize prices remained unchanged against previous week.
EXPORT
Barley
Within reporting week feed barley market trade activity remained high.
This week feed barley purchase prices ranged within UAH1,450–1,620 per MT (EXW-ex-elevator, depending on regions, lots and traders marketing strategy).
Within reporting week feed barley UAH purchase prices were UAH1,650–1,700 per MT (CPT deepwater ports); this week feed barley US$ purchase prices ranged within US$265–280 per MT (FOB Black Sea ports: Pivdenniy, Illichivsk, Odesa).
Wheat
Within reporting week traders didn’t make any feed wheat purchases due to offer absence. As of this week, traders have fixed new crop feed wheat declarative purchase prices as much as UAH1,300–1,500 per MT (EXW-ex-elevator).
Within this week feed wheat FOB basis export prices ranged within US$220–235 per MT.
Though traders dictated very low food wheat purchase prices (due to Ukrainian grains export duties introduction and VAT reimbursement cancellation) this week domestic market 3 and 2 classes food wheat actual prices were UAH1,700–1,800 per MT (EXW-ex-elevator) and UAH1,750–1,900 per MT (EXW-ex-elevator). At same time, 3 and 2 classes food wheat export prices (if global market prices conjuncture is taken into account) were correspondingly US$235–245 per MT (FOB Black Sea ports) and US$240–260 per MT (FOB Black Sea ports, depending on protein content).
Maize
Within reporting week feed maize market purchase prices ranged within UAH2,050–2,200 per MT (EXW-ex-elevator); prices depended on seller status (middleman or producer), shipments regions and contract conditions.
As of this week, feed maize export prices fluctuated within US$300–310 per MT (FOB Black Sea ports). Some export companies have concluded US$270–280 per MT (FOB Black Sea ports) export contracts for new crop feed maize.
Wide ranges of above-mentioned feed maize prices are motivated by fact that trading companies have declared 2 purchase prices levels: high level (for agricultural producers) and low level (for middlemen) after new Ukrainian Tax Code having had come into force.
