Authorities cannot control prices by 100%

Grain crops
Dynamics of prices for food wheat depends upon processes at regional markets. In southern regions harvest is almost over while in western regions it has just begun. Proposal prices of wheat of class 3 last week did not change while price of wheat of class 4 goes down (this class of wheat has almost one-third share in total production of wheat). Demand for wheat of class 5 is low.
Authorities try actively to influence price fixing. If there is a danger of any troubles because of selling at prices lower than recommended then market switches to illegal sale. But MinAP has other control levers, first of all regional purchases. So if price of grain, which is purchased for regional food programs, is increased up to recommended level, then there is high probability that prices in other contracts will also go up.
Both control levers of market can hardly be used entirely. That is why price of food grain crops may again start going down: after wheat of class 4 there may be drop in price of class 3.
But, however, there is no unanimous opinion in the market concerning future of prices. Around half of participants of the market expect decrease of prices for food grain crops while the other half anticipates that there will be no more price-cutting. Prospects of barley export are favorable from the first glance (due to expected problems with harvest in EU, Canada and Turkey) although it is necessary to say that it is hardly expected at world market that Ukraine will be able to export more than 1.5 million tons of barley. In the course of harvesting price for food wheat go down. Shipment of wheat for export may significantly grow within autumn months.
Oil-bearing crops
Most of oil-mills are about to stop, thus prices for sunflower seed oil may go up. Despite such increase of price owners of rapeseed oil did not have much choice (as it happened before) for sale both in the domestic market and export. Together with relatively low prices of rape oilcake this makes it is less attractive to process rape.
Demand for rape from exporters’ side has also gone down. First of all they are not satisfied with quality of yield grown in Ukraine and, second, there will be more interesting commodities to work with than rape in the current season.
by information of APK-Inform
www.apk-inform.com.ua