Within reporting week Ukrainian grains market didn’t undergo any significant changes. Due to Government decision to prolong grains export quoting regime until early new season, Ukrainian traders market activity remained almost zero low.
As for domestic sector, food wheat was purchased only by processors.
Within this week feed maize was purchased by just few exporters (most exporters abstained from purchases as grains export quotes distribution procedure so far remains unclear). So, most exporters focused on purchasing of less widespread grains (sorghum, millet, etc.) as well as oil crops and oil crops processing products, — though exporters faced great difficulties while trying to enter these grains/crops markets as they were already occupied by companies which had been working there for many years and therefore appeared to be quite unwilling to cede their market positions.
In meanwhile, traders admit now many big export companies still have considerable grains reserves which aren’t possible to be exported.
In what concerns kinds of grains, within this week high export quality feed maize enjoyed, as earlier, market highest demand. However, now Ukrainian high export quality feed maize reserves are already almost exhausted, — as most maize owners simply couldn’t retain their maize quality parameters as high as necessary within winter period.
While speaking about Ukrainian domestic grains market short-term prospects, experts admit country domestic grains prices will certainly start significantly declining; as to experts, main reason to force down prices is that agricultural producers will begin growing their grains offer in order to empty their warehouses to receive new grains crop.
EXPORT
Barley
As earlier, within reporting week feed barley market trade activity remained low due to processors slack demand; it is to be admitted, no trader made feed barley purchases.
As of this week, feed barley purchase prices remained same as within previous week: UAH1,850–2,000 per MT (EXW-ex-elevator, depending on regions/lots).
Within reporting week feed barley US$ purchase prices were US$270–280 per MT (FOB Black Sea ports: Pivdenniy, Illichivsk, Odesa).
Wheat
Within reporting week traders didn’t make any feed wheat purchases. As of this week, feed wheat market prices ranged within UAH1,800–1,900 per MT (EXW-ex-elevator, depending on regions).
Within this week feed wheat FOB basis export prices fluctuated within US$305–315 per MT.
As of this week, domestic market 3 and 2 classes food wheat prices were correspondingly UAH1,950–2,150 per MT and UAH2,000–2,200 per MT; at same time, 3 and 2 classes food wheat export prices (if global market prices conjuncture is taken into account) were correspondingly US$350–375 per MT (FOB Black Sea ports) and US$340–350 per MT (FOB Black Sea ports, depending on protein content).
Maize
Within reporting week feed maize market purchase prices fluctuated depending on seller status (middleman or producer), shipments regions and contract conditions, — UAH1,800–2,000 per MT (EXW-ex-elevator). It is to be admitted, traders were ready to pay UAH2,050–2,150 per MT for big lots in ports.
As of this week, feed maize export prices ranged within US$310–320 per MT (FOB Black Sea ports).
Wide ranges of above-mentioned feed maize prices are motivated by fact that trade companies have started declaring 2 purchase prices levels: high level (for agricultural producers) and low level (for middlemen) after new Ukrainian Tax Code having had come into force.
Grain export prices, USD/ò
Grain type
13.04.11
06.04.11
March
2011 average
February
2011 average
January
2011 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
350
375
360
385
349
350
330
3rd class wheat**
340
350
350
360
332
335
313
Feed wheat
305
315
305
315
300
294
276
Feed barley
270
280
270
280
276
276
265
Feed corn
305
315
302
315
300
292
278
Feed peas
310
340
310
340
321
320
317
Wheat bran
190
205
195
205
218
209
191
Oats
210
220
210
220
219
219
209
DAF
Feed corn
245
255
245
255
256
255
249
Rye
210
220
210
220
218
216
208
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
As of this week, Ukrainian domestic grains market remained slack/passive.
Tendency for food wheat purchase prices lowering (which has been dominating market within last few weeks) remained within week. However, prices lowering has made almost no influence on market situation as food wheat sale/purchase operations number was very low.
Within this week 2 and 3 classes wheat was getting cheaper in all regions except for western (though it would be more appropriate to tell “agrarians have become easier to deal with” rather than “wheat was getting cheaper”).
As of this week, food wheat offer has risen in southern/central regions. Food wheat offer rise is motivated with fact that most Ukrainian agricultural companies/elevator are going to start preparing since early May their warehouses to get new grains crop and therefore must sell their grains reserves already now. Besides, grains speculators have also enhanced their grains offer, — as they urgently needed to sell grains which had been earlier purchased with VAT (it is be admitted, new Ukrainian Tax Code stipulates that VAT can be returned only to those companies which make grains export shipments until this year Jul 1). Thus, now grains speculators can sell 2 class wheat at UAH2,100 per MT only to exporters, — since processors regard this price as incredibly high.
Within reporting week most flour millers continued processing only grains received from Agrarian Fund, so domestic market grains demand remained very low.
Besides, within this week mixed feeds plants have also reduced grains purchases rates; plants have focused mainly on feed maize purchases. In meanwhile, mixed feeds plants experts admit exporters grains demand absence is quite possible to provoke feed grains domestic market prices fall in near future.
Average purchase prices for food grains (ÑÐÒ processing plant), UAH/ò
Region
13.04.11
06.04.11
March
2011 average
February
2011 average
January
2011 average
Min
Max
Min
Max
2nd class wheat*
Western
2100
2400
2100
2400
2200
1945
1735
Northern
2150
2300
2150
2300
2180
1975
1765
Central
2100
2300
2100
2300
2170
1985
1760
Southern
2100
2280
2100
2280
2160
2005
1760
Eastern
2100
2300
2100
2300
2180
2000
1775
3rd class wheat**
Western
2050
2250
2050
2250
2110
1880
1675
Northern
2050
2220
2050
2220
2110
1910
1695
Central
2050
2220
2050
2220
2110
1925
1690
Southern
1950
2200
1950
2200
2090
1940
1700
Eastern
2030
2220
2030
2220
2110
1935
1695
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
