Within reporting week traders have much enhanced their domestic grains market activity mainly due to Government having had officially published its Decree on Ukrainian wheat/barley export quoting regime cancelling.
Within reporting week traders have much enhanced their domestic grains market activity mainly due to Government having had officially published its Decree on Ukrainian wheat/barley export quoting regime cancelling. As of this week, those export-oriented companies which kept their wheat/barley reserves in port terminals or in near-port elevators have urgently started shipping out their grains in order to export as much as possible before new season beginning: exporters believe if Government introduces grains export duties since this year Jul 1, they will bear additional expenses which might lead to big losses; besides, exporters are certain they can reckon upon export VAT return if they succeed to ship out grains before this date. However, there are also rumors that presently efficient grains export taxation mechanism is quite possible to remain unchanged and so export VAT will be returned only to those exporters which purchase grains directly from agricultural producers.
In meanwhile, within this week feed maize trade has appeared the most active among all other grains. As of this week, elevators feed maize prices have significantly grown against previous week, — to UAH2,250 per MT (it is to be admitted, this price was up against this week food wheat offer price).
As of this week, food wheat market situation has become rather ambiguous: on one hand, agrarians continued withholding their food wheat reserves in anticipation for prices growth; on other hand, however, this agrarians policy might easily fail as new season is approaching with wheat prices possible to significantly decline.
After «grains export gates» have been opened this week, many traders have concluded grains export forward contracts. It is to be mentioned, these contracts prices have appeared to be unusually low: thus, 3 class wheat prices fluctuated within US$285-US$310 per MT. Besides, some experts admit these contracts prices didn’t depend much upon grains crop year — prices were about same both for previous year as well as this year grains crop.
Experts affirm contracts prices significant decline has been caused mainly by technical reason, — that is, after Ukraine and RF having had started grains export shipments, importers (Turkey/some EU countries) have appeared not ready to purchase these grains at global market prices and therefore significantly reduced their bids. Thus, within this week several Turkish import companies were ready to purchase Ukrainian wheat only at US$295–300 per MT, CIF (what equals to US$255–260 per MT, FOB Black Sea ports). It is to be reminded,
still 2 weeks ago Ukrainian food wheat export prices had been ranging within US$345–360 per MT !
Besides, railway grains transportation problems were also to be taken into consideration within this week: many export-oriented companies have faced work complications/grains cost price growth as they had to switch from railway upon more expensive road transportation due to railway cars deficit.
EXPORT
Barley
As earlier, within reporting week feed barley market trade activity remained low due to processors slack demand. It is to be admitted, some traders have started making new crop feed barley forward purchases; however, traders dictated only US$ purchase prices (US$230–240 per MT, FOB).
As of this week, feed barley current purchase prices ranged within UAH1,750–1,900 per MT (EXW-ex-elevator, depending on regions/lots).
Within reporting week US$ purchase prices for new/previous feed barley crop were US$263–278 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 UAH1,750–1,900 per MT (EXW-ex-elevator, depending on regions).
Within this week feed wheat FOB basis export prices have declined to US$260–278 per MT.
As of this week, domestic market 3 and 2 classes food wheat prices remained same as within previous week: UAH1,950–2,100 per MT and UAH2,000–2,150 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$290–305 per MT (FOB Black Sea ports) and US$300–325 per MT (FOB Black Sea ports, depending on protein content).
Maize
Within reporting week feed maize market purchase prices have grown against previous week, — up to UAH2,150–2,300 per MT (EXW-ex-elevator); prices depended on seller status (middleman or producer), shipments regions and contract conditions. On CPT port basis, traders were ready to pay UAH2,430–2,480 per MT or US$310–318 per MT for big lots (CPT port).
As of this week, feed maize export prices ranged within US$325–335 per MT (FOB Black Sea ports). Some export companies have concluded US$285–295 per MT (FOB Black Sea ports) export contracts for new crop feed maize.
