Within reporting week food wheat was actively purchased only by processors; exporters made just slack purchases. Most food wheat owners were quite reluctant to sell off their reserves as they anticipated for peak prices. However, many agrarians who owned food wheat characterized with damage high percentage (mould-, rot- or smut-affected wheat) have started selling off their reserves as they understood their spoiled wheat will just continue to lose quality with no prices significant growth to be expected in near future.
Within reporting week feed barley market situation remained ambiguous: as earlier, exporters faced big lots purchases problems (caused by low offer and importers having had already contracted big feed barley lots). Though ports feed barley purchase prices remained stably high, agrarians were quite reluctant to sell their reserves as they understood that only barley owners could dictate terms on market.
As of this week, feed maize market situation remained same as within previous week: feed maize was demand only by mixed feeds plants. Within this week some export-oriented companies have concluded new crop feed maize forward contracts.
It is to be admitted, current feed barley/feed maize high prices will certainly force domestic mixed feeds producers to start gradually switch to cheaper grains (in part., feed wheat) purchases.
EXPORT
Barley
Within reporting week feed barley market trade activity remained high.
This week feed barley purchase prices ranged within UAH1,650–1,770 per MT (EXW-ex-elevator, depending on regions, lots and traders marketing strategy).
Within reporting week feed barley UAH purchase prices were UAH1,800–1,900 per MT (CPT deepwater ports); this week feed barley US$ purchase prices ranged within US$283–298 per MT (FOB Black Sea ports: Pivdenniy, Illichivsk, Odesa).
Wheat
Within reporting week traders didn’t make any feed wheat purchasesdue to offer absence. As of this week, traders have fixed new crop feed wheat declarative purchase prices as much as UAH1,400–1,580 per MT (EXW-ex-elevator).
Within this week feed wheat FOB basis export prices ranged within US$220–235 per MT.
Within reporting week domestic market 3 and 2 classes food wheat purchase 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 UAH1,950–2,100 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$300–315 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.
Grain export prices, USD/ò
Grain type
03.08.11
27.07.11
June
2011 average
May
2011 average
April
2011 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
242
265
240
260
314
364
369
3rd class wheat**
237
247
235
245
300
346
351
Feed wheat
220
235
220
235
269
315
314
Feed barley
283
298
275
288
263
265
276
Feed corn
300
315
300
315
324
315
313
Feed peas
290
320
290
320
322
325
328
Wheat bran
175
185
175
185
187
189
196
DAF, Ukrainian-Russian border
Feed corn
235
245
235
245
244
245
250
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
Within last 2 weeks all regions processors have considerably declined their food wheat purchase prices (though prices recovery tendency has already appeared within this week). Prices decline was to be explained mainly with agrarians slack trade activity; besides, agrarians offered high-quality wheat only at UAH1,550–1,700 per MT, EXW (much up against processors purchase prices). Wheat was offered mainly by those agrarians which lacked storage facilities and needed financial means replenishment, while other agrarians preferred to abstain from sales so far.
In what concerns wheat quality, flour milling integrated plants experts admit agrarians offered mainly 3 and 2 class food wheat (though damaged wheat percentage was rather high in some regions). Besides, in western regions agrarians so far haven’t completed wheat harvesting campaign due to rainy weather: recent rainstorms have caused wheat lodging in some areas with consequent in-spike germination due to excessive moisture; destroyed were also some barley, rape and grain peas areas.
In meanwhile, flour milling integrated plants experts affirm in near future agrarians will continue withholding their food wheat reserves with sale prices growing up, — what will make market situation still more complicated for wheat consumers.
Average purchase prices for food grains (ÑÐÒ processing plant), UAH/ò
Region
03.08.11
27.07.11
July
2011 average
June
2011 average
May
2011 average
Min
Max
Min
Max
2nd class wheat*
Western
1700
1850
1700
1850
2000
2195
2240
Northern
1700
1800
1700
1800
1975
2160
2190
Central
1700
1820
1700
1820
1966
2155
2175
Southern
1620
1780
1600
1750
1930
2150
2155
Eastern
1650
1800
1650
1800
1960
2165
2190
3rd class wheat**
Western
1600
1750
1600
1750
1915
2120
2140
Northern
1600
1720
1600
1720
1910
2105
2125
Central
1600
1720
1600
1700
1900
2100
2115
Southern
1600
1720
1600
1700
1885
2075
2075
Eastern
1600
1720
1600
1700
1900
2100
2105
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
