No anticipation for high prices of grain

Grain crops

While one politician tries to keep high domestic prices for grain crops the others compete in cutting down price of bread and the third group of politicians compete in raising their voices against uncivilized and non-transparent market.
High gross production in southern regions lead to price-cutting even with rather low quality of yield. Processing companies have already created stocks and are not in a hurry with further purchases. Milling companies from central and western regions are not in a hurry too to purchase grain in southern regions: they wait for cheaper grain to appear at their home places. As a result prices go down in the whole territory of Ukraine. Regional authorities do not object to small price-cutting of wheat, which will make it possible to cut down prices of bread as well. From the other hand significant price-cutting for grain crops is not so much necessary because it may worsen agrarian results of regions.

Announced purchases at high prices from “Khlib Ukrayiny” still are not noticed and it is hardly expected that this company will buy wheat of class 4 at the price of 600 UAH/MT as it was declared before. State Reserve will hardly give high prices. And local authorities are not going to raise purchase prices for the time being. Most probably that in many regions people are oriented towards level of prices at exchanges.
It looks like exporters will get more and more proposals for food grain crops because in some regions owners of grain of class 3 are oriented towards selling at the price of 450-500 UAH/MT. Due to shift of harvesting of food wheat in central and western regions and also due to movement of grain from region to region prices for food grain will go down in the whole territory of the country. Domestic prices for forage barley went down a bit during last week: buyers already have rather big quantities of grain and are not always ready to pay rather high price during next purchases. A prominent role is played by high gross output of barley due to which some companies managed to buy amounts planned for this year. However, traders say that from the point of view of prices it is more profitable to work now with Russian barley, and some transnational companies limit their purchases in Ukraine.

Prices for forage wheat go down rather fast. Demand for relatively expensive forage wheat is minimal from both exporting and processing companies. Only small part of wheat of new harvest is demanded. It is difficult to expect considerable drop of prices.

Oil-bearing crops

Domestic stocks of sunflower seed oil in Ukraine reduce constantly. There is an opinion that within next year there will be a stage of price growing within a many-years cycle. As a result of that no one is in a hurry to ship out sunflower seed oil from ports despite the fact that it has been already prepared for shipment and export prices are acceptable.
Home price for sunflower seed oil continue to go up. One of the main reasons is growing demand from people’s side because industrial consumers buy oil in limited quantities as they used before. Some demand is shifted towards bottled sunflower seed oil. Recently price for oil go up for 50 UAH/MT per week on average. But rocketing of prices will be limited by the fact that will be more and more profitable to sell oil in the domestic market in the course of time than to export it.

Rape became a bit cheaper last week. Acreage under this crop is smaller this year but this fact is compensated by high crop productivity. At the same time rather big quantities of rape have been sold already by forward contracts and current proposal is limited because many producers are not in a hurry to sell. But domestic prices for rape go down.
by information of APK-Inform
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