As of now, one can definitely say no to Ukrainian wheat/maize export duties as President Viktor Yanukovych has signed draft Law on wheat/maize export duties cancelling.
Newly signed Law stipulates that Ukrainian food/feed wheat and maize exports should be imposed zero export duties upon, while barley export duty should remain 14% (but not below EUR23 per MT).
In meanwhile, within reporting week Ukrainian domestic food wheat market was dominated, as earlier, only by processors. As of this week, processors have succeeded to conclude just small number of sale/purchase agreements with traders, — what is to be explained with wheat low purchase prices. It is to be admitted, exporters would have gladly raised wheat purchase prices in order to make use of grains export duties benefits, — but refused to do that as global wheat market had slackened and thus partially leveled off prices growth potential spread. So, within this week agrarians remained quite reluctant to sell their food wheat reserves at prices which they considered underestimated and therefore trading companies were busy mainly with maize, barley and feed wheat exporting.
EXPORT
Barley
Within reporting week feed barley export prices remained stable. Barley export market was rather passive; domestic barley offer remained very low.
This week feed barley purchase prices ranged within UAH1,400–1,500 per MT, EXW-ex-elevator (depending on regions/lots) and UAH1,550–1,650 per MT, CPT Black Sea ports. It is to be admitted, big lots prices were up against small ones.
As earlier, some companies continued declaring UAH1,300–1,400 per MT EXW-ex-elevator prices (these prices are very low and are to be considered rather declarative than real).
It is to be admitted, there was no barley trade any more in big ports as traders were busy only with exporting of earlier purchased barley lots (with export prices ranging within about US$255–265 per MT.
Wheat
Within reporting week wheat market purchase prices were growing up, with spread between food/feed wheat prices remaining rather small. As earlier, wheat offer was low as traders continued declaring purchase prices down against processors even despite Ukrainian grains export duties recent cancellation.
As of this week, traders have fixed feed wheat purchase prices as much as UAH1,200–1,350 per MT (EXW-ex-elevator)/UAH1,350–1,420 per MT (CPT Black Sea/Azov Sea ports).
Besides, within reporting week traders were purchasing 3 and 2 classes food wheat at UAH1,400–1,450 per MT (EXW-ex-elevator) and UAH1,450–1,500 per MT (EXW-ex-elevator), though agrarians offers ranged within UAH1,500–1,600 per MT (EXW-ex-elevator).
At same time, exporters have fixed 3 and 2 classes food wheat purchase prices UAH1,500–1,600 per MT (CPT Black Sea/Azov Sea ports).
Maize
Within reporting week feed maize market purchase prices have improved to UAH1,400–1,500 per MT (EXW-ex-elevator); prices depended on seller status (middleman or producer), shipments regions and contract conditions.
On CPT Black Sea/Azov Sea ports basis, feed maize purchase prices were much different: UAH1,550–1,650 per MT, depending on lots, quality and shipments urgency.
As of this week, feed maize export prices fluctuated within US$235–255 per MT, FOB.
Grain export prices, USD/ò
Grain type
19.10.11
12.10.11
September
2011 average
August
2011 average
July
2011 average
Min
Max
Min
Max
FOB, Ukrainian Black Sea port
2nd class wheat*
235
255
235
255
275
266
254
3rd class wheat**
228
240
228
240
267
257
243
Feed wheat
215
230
215
230
254
244
229
Feed barley
255
265
255
265
280
288
265
Feed corn
245
255
235
255
283
302
303
Feed peas
285
320
285
320
313
307
305
Wheat bran
170
180
170
180
175
177
180
*- protein content: minimum 12.5%
**- protein content: minimum 11.0%
Processors Activity
Within reporting week domestic flour millers demonstrated food grains purchases low rates as most of them had already accumulated enough food grains resources to process for few months ahead. Besides, many flour millers have reduced food grains purchase prices (as they were able to dictate purchase prices under current market conditions due to competitors absence).
At same time, most flour millers admit within this week their ready products sale rates were low (what resulted in flour millers financial state worsening and, correspondingly, grains purchases becoming problematic).
It is to be admitted, within this week mixed feeds plants didn’t have any problems with feed grains purchases as they could dictate purchase prices up against exporters similar.
Average purchase prices for food grains (ÑÐÒ processing plant), UAH/ò
News on non-introduction of Ukrainian sunoil export duties has brought positive results to country farmers and agrarians. Ukrainian President has already signed this draft Law; consequently, domestic market sunseeds purchase prices have started growing.
It is to be admitted, another reason motivating Ukrainian domestic market sunseeds purchase prices growth was sunoil export prices recent boost.
As it seems, farmers have finally achieved their goal and will, since now on, start actively selling their sunseeds reserves. However, some market operators affirm that most agrarians, in fact, are quite reluctant to make sunseeds sales (save for those who badly need money due to different reasons). It is to be admitted, agrarians are right from their point of view: within long years ordinary Ukrainian agrarians have succeeded to learn very well our country market prices tendencies and are well aware of fact that sunseeds prices are gradually boosting up as much as next year beginning approaches. So, most agrarians now just want their sunseeds purchase prices to continue growing up. All that means that Ukrainian sunseeds processors and agrarians still haven’t found sunseeds purchase price which would suit both of them; so far, no one can say when this commonly accepted price will be found.
Within this week domestic market EXW basis sunseeds purchase prices ranged within UAH2,700–2,800 per MT (for middlemen) and UAH3,100–3,200 per MT (for agricultural producers).
As of this week, CPT basis sunseeds purchase prices fluctuated within UAH3,200–3,300 per MT (for agricultural producers) and UAH2,800–2,900 per MT (for middlemen).
Within reporting week Ukrainian sunseeds FOB Black Sea ports basis export prices have also slightly grown, — to US$470–480 per MT, up US$10 per MT (despite of domestic market purchase prices having risen by UAH200 per MT). It is to be admitted, sunseeds export prices growth has been motivated by some other factors besides domestic market prices conjuncture.
As of this week, Ukrainian sunseeds have been much demanded by RF and Romania (which has activated its Constanta port trade). Thus, within this week Ukrainian sunseeds enjoyed demand, — but Ukrainian sunseeds offer appeared to be zero low as traders found it unprofitable to carry out trade at these prices.
In meanwhile, within this week Ukrainian agrarians continued sunflower harvesting. As of Sept 17/11, sunflower has been harvested at 4,346.600 ha (95% total forecasted); agrarians have got 8,049.500 MT sunseeds (average yield — 18,5 metric centners per ha, up against 15,9 metric centners per ha in 2010).
Sunoil, sun.pell
Within this week global market crude sunoil import demand has risen due to attractive prices. As a result, Ukrainian crude sunoil export prices have strengthened: thus, on FOB Black Sea ports basis, this week Ukrainian crude sunoil export offer prices ranged within US$1,070–1,080 per MT (Oct-Dec 2011 shipments); export demand prices were US$1,060–1,070 per MT (Oct-Dec 2011 shipments).
Within reporting week Ukrainian domestic crude sunoil market followed export market tendencies and therefore also strengthened: as of this week, producers declared UAH9,400–9,600 per MT (EXW) crude sunoil domestic sale prices.
Within this week Ukrainian domestic sun.pell market remained mainly unchanged: UAH1,350–1,450 per MT (sunseeds meal prices fluctuated within UAH1,150–1,250 per MT).
Within this week Ukrainian domestic sun.pell export market prices have slightly changed against previous week: thus, DAF Poland basis export prices ranged within US$160–165 per MT. It is to be admitted, DAF Belarus basis export demand prices fluctuated within US$155–160 per MT (offer — US$165–170 per MT).
On FOB Black Sea ports basis, this week Ukrainian sun.pell export prices ranged within US$160–165 per MT.
Export prices of Ukrainian sunflower complex articles
Delivery basis
19.10.2011
Changes within
week, %
12.10.2011
Crude sunoil in bulk (US$ per MT)
Offer
Demand
Average
Offer
Demand
Average
EXW*, UAH per MT
9,600
9,400
9,500
+10
8,700
8,500
8,600
FOB Black Sea ports
1,075
1,065
1,070
+3
1,045
1,025
1,035
*Domestic warehouses prices
Export prices of Ukrainian sunflower complex articles
Delivery basis
19.10.2011
Changes within
week, %
12.10.2011
Sun.pell (US$ per MT)
Offer
Demand
Average
Offer
Demand
Average
EXW*, UAH per MT
1,450
1,350
1,400
0
1,450
1,350
1,400
DAF Poland
165
160
163
-2
170
165
168
DAF Belarus
168
158
163
-2
168
163
166
FOB Black Sea ports
165
160
163
0
165
160
163
*Domestic warehouses prices
Rape
As of Oct 17/11, Ukrainian agrarians have sown winter rape at 904,300 ha (96% total forecasted 952,200 ha).
Within reporting week Ukrainian rape market activity remained rather slack. Rape trade rates were rather low (though rape purchase prices have, once again, grown).
As of this week, country domestic market rape purchase prices ranged within UAH4,100–4,200 per MT (EXW)/UAH4,300–4,400 per MT (CPT).
Within reporting week Ukrainian rape export prices have also risen, — up to US$580–585 per MT (FOB Black Sea ports). However, within this week Ukrainian rape export trade remained very slack (in fact, trade rates have fallen to almost zero low).
Soybeans
As of Oct 17/11, Ukrainian agrarians have harvested soybeans at 847,100 ha (75% total forecasted); agrarians have got 1,932.300 MT soybeans (average yield — 20,4 metric centners per ha, up against Oct17/10 15,6 metric centners per ha).
Within this week Ukrainian soybeans market has slightly strengthened; as of this week,
soybeans prices ranged within UAH2,900–3,000 per MT, EXW/UAH3,100–3,200 per MT, CPT. This week soybeans export price equaled to US$405 per MT (FOB Black Sea ports).
This week home market soy.pell prices fluctuated within UAH4,300–4,500 per MT (soybeans meal — UAH3,100–3,500 per MT; soyoil — UAH8,600–8,800 per MT).
