As earlier, within reporting week flour millers remained main market participants interested in food wheat purchases; export-oriented companies didn’t make any food wheat purchases.
In northern/eastern regions, food wheat minimal purchase price growth tendency appeared due to food wheat deficit.
Within this week feed wheat purchase prices remained as high as earlier due to low offer/processors stable demand. It is to be admitted, difference between food wheat/feed wheat purchase prices remained small within this week, so agrarians tried to abstain from food wheat sales in anticipation for next year spring prices growth.
In meanwhile, grains export quotas obtaining procedure problems have been gradually removed, so exporters may again reckon on grains export resumption and earlier concluded contracts fulfillment. Besides, grains-loaded vessels which had been remaining on ports roadsteads were allowed to leave ports for their destinations; however, exporters still don’t know whether it is necessary to obtain export licenses for these vessels grains, — that is, whether these vessels grains volumes should be considered within grains export quotas framework or not.
Within this week export-oriented companies were quite reluctant to resume domestic grains purchases as they had already invested significant financial means into grains remaining unsold on domestic elevators/port terminals.
In meanwhile, grains export quoting introduction continues making impact on domestic economy: thus, within this week Ukrainian economy many branches have also felt , due to domino principle, grains export quoting negative influence. For instance, Nibulon (one of Ukrainian grains biggest exporters) has suspended river vessels and elevators construction project financing within this week due to circulating assets deficit, — what will soon result in project workers salary payments delays, construction concrete and metal purchases suspension, etc.. So, grains export quoting introduction has yielded both positive and negative results: on one hand, Ukrainian domestic grains/grains processing products prices growth has slightly slowed; on other hand, however, Ukraine fails to receive huge money amounts which could be invested into economy different branches development.
EXPORT
Barley
Within reporting week not numerous free feed barley owners readily made prices discounts due to demand absence. As of this week, feed barley purchase prices ranged within UAH1,600–1,680 per MT (EXW-ex-elevator, central/southern regions)/UAH1,550–1,650 per MT (EXW-ex-elevator, other regions). As earlier, no trader made feed barley purchases due to grains quoting regime recent introduction.
As of this week, feed barley US$ purchase prices were US$250–260 per MT (FOB Black Sea big ports: Pivdenniy, Illichivsk, Odesa).
Wheat
Within reporting week traders didn’t make any feed wheat purchases. As of this week, feed wheat offer prices remained UAH1,500–1,600 per MT (EXW-ex-elevator), unchanged against previous week.
As of this week, feed wheat FOB basis export prices ranged within US$235–250 per MT.
There was no food wheat trade within reporting week. As of this week, 3 and 2 classes food wheat declarative export prices (if global market prices conjuncture is taken into account) were correspondingly US$275–290 per MT (FOB Black Sea ports) and US$290–315 per MT (FOB Black Sea ports).
Maize
Within this week traders were ready to purchase feed maize at UAH1,520–1,650 per MT (EXW-ex-elevator, depending on regions/contract conditions).
As of this week, feed maize UAH purchase prices were UAH1,700–1,750 per MT (CPT port)/US$250–260 per MT (FOB Black Sea ports).
Grain export prices, USD/ò
Grain type
10.11.10
03.11.10
October
2010 average
September
2010 average
August
2010 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
290
315
290
315
294
287
256
3rd class wheat**
275
290
275
290
274
267
241
Feed wheat
240
255
240
255
242
230
222
Feed barley
250
260
250
260
254
240
234
Feed corn
250
260
250
260
251
234
202
Feed peas
270
290
270
290
276
269
256
Wheat bran
180
195
180
195
187
150
120
Oats
180
195
180
195
181
162
144
DAF
Feed corn
235
245
235
245
234
218
191
Rye
175
185
175
185
179
168
156
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
As earlier, within reporting week domestic grains market remained in uncertain state: all market participants waited for export quotas distribution ending and subsequent grains market prices conjuncture change. Most processors believed that Ukrainian grains export limitation canceling (to start after since new year beginning) will result in domestic market wheat prices growth. Grain holders were of same opinion, so within this week they remained quite reluctant to sell their wheat reserves at current prices. As a result, many flour millers found it utterly difficult to buy necessary wheat lots in order to replenish their reserves.
Within this week those flour milling integrated plants which urgently needed grains have significantly raised their purchase prices, but even despite of that they couldn’t buy grains sufficient volumes; all other integrated plants, however, kept their purchase prices unchanged as of previous week.
Average purchase prices for food grains (ÑÐÒ processing plant), UAH/ò
Region
10.11.10
03.11.10
October
2010 average
September
2010 average
August
2010 average
Min
Max
Min
Max
2nd class wheat*
Western
1580
1730
1580
1730
1635
1510
1440
Northern
1600
1800
1600
1800
1660
1555
1500
Central
1600
1750
1600
1750
1665
1540
1520
Southern
1630
1750
1630
1750
1675
1570
1600
Eastern
1630
1800
1630
1800
1715
1605
1550
3rd class wheat**
Western
1520
1650
1520
1650
1575
1450
1385
Northern
1520
1650
1520
1650
1585
1460
1410
Central
1550
1650
1550
1650
1600
1480
1470
Southern
1550
1650
1550
1650
1600
1505
1540
Eastern
1550
1700
1550
1700
1625
1530
1470
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
