Last week the activity of traders in the grain market was practically equal to zero. Some companies still have not received the export licenses, and until the new year there were only three weeks. According to representatives of public authorities, the government plans to extend the quota regime of grain up to 31 March 2011 with the simultaneous increase of quotas to 1.5 million tonnes: for wheat — from 0,5 million tonnes to 1 million tonnes, corn — from 1 million tonnes to 3 million tonnes, the quota for export of barley remains unchanged — 0.2 million tonnes. Such intention of the market operators assessed as detrimental for business. First, many trade companies have already begun to lay off staff and to look for other ways to reduce costs. In addition, the sanctioned of the new tax code the work of brokers will be more difficult, as in the next year only farmers will be able to sell agricultural products to processors with the "previous" rules. Secondly, in the conditions of the market stagnation a lot of market members won’t get huge sums of money — farmers, freight forwarders, surveyors, transporters etc. Export-oriented companies do not participate in the procurement of wheat and barley, in fact they now have to decide what to do with the grain purchased before. The main parties interested in purchasing grain were processing enterprises. In the feed corn trade sector there were not any changes. Major operators, leading the goods purchase, are manufacturers of animal feed, and distilleries. Only a few exporters participated in the corn trading last week.
Despite the significant growth of food wheat in the world market, the indicative level of export prices in Ukraine has changed slightly. The importers estimate our country as an exporter with a high risk of default, and therefore the price of demand for Ukrainian products are much lower. One can only hope that this attitude will not last long, and in terms of "free" trade domestic companies will regain the reputation of a reliable and stable supplier.
EXPORT
Barley
As earlier, within reporting week feed barley market remained actually dead.
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 introduction.
Within reporting week feed barley US$ purchase prices were US$247–260 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$240–250 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$280–295 per MT (FOB Black Sea ports) and US$295–320 per MT (FOB Black Sea ports).
Maize
As of this week, feed maize purchase prices remained unchanged against previous week, — UAH1,500–1,650 per MT (EXW-ex-elevator, depending on regions/contract conditions).
As of this week, feed maize export prices ranged within US$235–250 per MT (FOB Black Sea ports).
Grain export prices, USD/ò
Grain type
08.12.10
01.12.10
November
2010 average
October
2010 average
September
2010 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
295
320
280
305
298
294
287
3rd class wheat**
280
295
270
280
279
274
267
Feed wheat
240
250
235
245
244
242
230
Feed barley
250
260
245
255
253
254
240
Feed corn
235
250
235
250
249
251
234
Feed peas
285
305
270
290
276
276
269
Wheat bran
173
188
170
183
183
187
150
Oats
185
195
180
190
186
181
162
DAF
Feed corn
225
235
220
230
233
234
218
Rye
180
195
175
185
180
179
168
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
Last week the wheat market remained inactive. As before, the grain supply by the flour producers’ prices was low that in the terms of limited financing complicates their work. Most farmers who have capacity for long term grain storage, preferred not to rush into selling, expecting to increase prices in the spring.
The range of wheat purchase prices remained unchanged, although some plants were forced them to raise to the level of supply. Those plants that have sufficient stocks of raw materials and not in need of replenishment, left their prices unchanged, buying small lots of grain.
In general, on the eve of New Year celebrations any significant changes are not expected in the domestic grain market.
Average purchase prices for food grains (ÑÐÒ processing plant), UAH/ò
Region
08.12.10
01.12.10
November
2010 average
October
2010 average
September
2010 average
Min
Max
Min
Max
2nd class wheat*
Western
1630
1750
1600
1750
1660
1635
1510
Northern
1650
1800
1620
1800
1700
1660
1555
Central
1640
1780
1620
1750
1680
1665
1540
Southern
1650
1750
1650
1750
1690
1675
1570
Eastern
1650
1800
1650
1800
1720
1715
1605
3rd class wheat**
Western
1570
1660
1550
1650
1590
1575
1450
Northern
1580
1700
1550
1660
1590
1585
1460
Central
1580
1680
1550
1670
1600
1600
1480
Southern
1600
1700
1560
1670
1600
1600
1505
Eastern
1570
1700
1570
1700
1630
1625
1530
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
