Last week there were not any significant changes on the food grain market. Only a few companies were interested in buying wheat, the rest don’t show interest due to grain export prohibition.
The most popular agricultural crops for exporters that had not yet left the market (Nibulon, Serna, Kernel, Bunge) are corn and feed wheat.
It should be noted that the process of getting export quota has been opaque and discriminatory against part of the trading companies. The intentional delay by officials in obtaining the permits of the Ministry of Agricultural Policy has led some companies to apply for a quota of only 15–16 of November. The last date of documents receipt was 18 of November. That’s why the Ministry of Economy had a few days for the examination of documents. Moreover, 12 of November the Ministry of Economy on the meeting distributed quotas between the companies that had already undergone the procedure for obtaining licenses. The question is, how could other companies that submitted documents within the existing deadlines apply for quotas, if they have already distributed?!… According to traders, no one will dispute the legitimacy of government action. To sue the government is unreal — the trial could delay for a long time, that will result in significant financial costs when the prospect to win is very ephemeral.
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$252–262 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$245–250 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$285–300 per MT (FOB Black Sea ports) and US$300–325 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$242–260 per MT (FOB Black Sea ports).
Grain export prices, USD/ò
Grain type
15.12.10
08.12.10
November
2010 average
October
2010 average
September
2010 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
300
325
295
320
298
294
287
3rd class wheat**
285
300
280
295
279
274
267
Feed wheat
245
255
240
250
244
242
230
Feed barley
252
262
250
260
253
254
240
Feed corn
242
260
235
250
249
251
234
Feed peas
290
310
285
305
276
276
269
Wheat bran
175
190
173
188
183
187
150
Oats
190
200
185
195
186
181
162
DAF
Feed corn
230
245
225
235
233
234
218
Rye
190
205
180
195
180
179
168
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
The processing of enterprises was held in tempo. According to millers situation with the purchase of grain a little bit better, particularly in some regions the total number of supply has increased. According to experts, this increase in activity of the owners of grain was due to the approaching holiday season. After all, farmers in this period do not sale goods by large volume and the market is inactive. In the long term cost of grain will rise due to lack of essential supportive factors. In general the cost of basic grains and legumes remained the same.
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
1630
1750
1660
1635
1510
Northern
1650
1800
1650
1800
1700
1660
1555
Central
1640
1780
1640
1780
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
1570
1660
1590
1575
1450
Northern
1580
1700
1580
1700
1590
1585
1460
Central
1580
1680
1580
1680
1600
1600
1480
Southern
1600
1700
1600
1700
1600
1600
1505
Eastern
1570
1700
1570
1700
1630
1625
1530
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
