As earlier, within reporting week Ukrainian domestic grains market remained under influence of national currency factor: UAH/US$ exchange rate raise has made Ukrainian domestic grains market participants feel completely stumped — as much stumped as they had been earlier, when UAH/US$ exchange rate had been sharply falling. Ukrainian agrarians, after having got acquainted with domestic market grains renewed prices within this week, suddenly became morally incapable to accept domestic market opposite tendency. Grains prices quick fall (as quick as their boost had earlier been) has much slackened agrarians activity, and so Ukrainian domestic grains market, which couldn’t boast of high activity even before this event, has simply come to a halt. Within this week Ukrainian agrarians have become just passive observers of country domestic market grains UAH prices collapse: in fact, some grains prices’ fall has exceeded UAH1,000 per MT within last 2 weeks (some oilseeds prices have collapsed even more). As a result, Ukrainian domestic grains market has just come to a standstill. It is to be admitted, one more factor which made agrarians suspend their activity was that Ukrainian retail sale networks within this week continued rising their food articles sale prices — though at same time domestic market grains purchase prices continued falling. Within reporting week Ukrainian domestic market grains prices have totally fallen at all trading bases. It is to be admitted, our country domestic market grains prices fall has been additionally stimulated by global market prices decline followed with Ukrainian export market grains prices corresponding lowing. It is to be mentioned, within this week Ukrainian export market grains prices have lowed just slightly — but this process has already become a stable tendency within last few weeks. Besides, forward purchase prices (offered by big traders) were also going down within this week. In meanwhile, within this week Ukrainian sowing campaign has started. It is to be admitted, now Ukrainian agrarians are dominated by different moods and feelings — but most agrarians feel depressed. Many agrarians, especially those belonging to medium-scale business, have faced really huge losses due to national currency recent devaluation. It is to be said, medium-scale agrarians have earlier been the most stable category of Ukrainian agrarian producers as they always used their own resources within grains growing process without any bank loans — on the contrary, they always sold off their grains with received money placed then on bank deposit accounts (to be spent gradually as much as needed for sowing campaigns and other necessities). Besides, they usually didn’t transfer their money into the offshore zones or reduce their financial risks, so after having sold off their grains and placed money on bank deposit accounts within last year autumn, they have suffered financial losses due to seeds, fertilizers, fuels/lubricants and plant protection means prices’ multiple growth. As a result, many Ukrainian grains producers have reduced their sowing areas; some of them are going to switch upon oilseeds’ growing as it is more profitable under current market conditions.
Export companies activity
Wheat
Within reporting week Ukrainian traders’ 2 class wheat purchase prices have fallen to UAH3,700–4,100 per MT (EXW), down UAH450 per MT against previous week; 3 class wheat — to UAH3,600–4,000 per MT (EXW), down UAH450 per MT as of last week; feed wheat purchase prices — to UAH3,300–3,700 per MT (EXW), down UAH450 per MT against previous week. On CPT Black Sea/Azov Sea ports basis, Ukrainian export companies have reduced 2 class wheat purchase prices to UAH4,000–4,200 per MT (down UAH450 per MT against previous week); 3 class wheat — UAH3,900–4,100 per MT (down UAH450 per MT as of last week); feed wheat — to UAH3,600–3,800 per MT (down UAH450 per MT against previous week). Simultaneously, within this week traders’ 2 class wheat FOB Black Sea/Azov Sea ports basis export prices have declined to US$225–230 per MT (down US$1 per MT against previous week); 3 class wheat export prices remained US$220–225 per MT (unchanged as of last week); feed wheat (this year Mar-May shipments) export prices have sagged to US$200–205 per MT (down US$5 per MT against previous week). It is to be admitted, traders have fixed wheat (this year Aug-Sept shipments, FOB Black Sea/Azov Sea ports basis) export forward prices as much as:
— 12.5% protein wheat — US$205–210 per MT; — 11.5% protein wheat — US$200–205 per MT; — feed wheat — US$185–190 per MT.
Maize
Within this week traders have declined their EXW basis feed maize purchase prices UAH3,000–3,400 per MT (down UAH100 per MT against previous week). On CPT Black Sea/Azov Sea ports basis, exporters have reduced their feed maize purchase prices to UAH3,200–3,500 per MT (down UAH50 per MT as of last week). At same time, on FOB Black Sea/Azov Sea ports basis, exporters’ feed maize offer prices have fallen to US$166–175 per MT (down US$2 per MT).
Barley
As of this week, traders have declined their feed barley purchase prices to UAH3,400–3,800 per MT (EXW), down UAH350 per MT against previous week. On CPT Black Sea/Azov Sea ports basis, traders have reduced their feed barley purchase prices to UAH3,800–4,000 per MT, down UAH250 per MT as of last week. Simultaneously, on FOB Black Sea/Azov Sea ports basis, exporters’ feed barley offer prices have lowed to US$203–207 per MT (down US$2 per MT against previous week).
