Price of wheat and barley increases with rising exports
During the last week of July from the seaports of Ukraine exported 625,6 thousand tons of grain, whereas in previous week the figure was only 149,5 thousand tons. The structure of exports the following:
- wheat – 358,9 thousand tons,
- barley – 207.2 thousand tons,
- corn – 48.7 thousand tons
- peas – 10.8 thousand tons.
Pace of exports is significantly lower than last year because importers buy only the cargo needed to cover the stocks, hoping that prices will stay at the same level.
Russia also is stepping up the pace of exports. If during 18-24 July it exported 308,1 thousand tons of grain, 25-31 July were sold 583,8 thousand tons, among which 527,2 thousand tons is wheat.
As of August 1, Ukraine threshed 5.2 million hectares of wheat, accounting for 84% of the plan. Collected 21.5 million tons of grain with a yield of 0.41t/ha, whereas last year during the same period, gathered by 21.9 million tons with a yield of 0.373 t/ha. Forecast of wheat production increased to 25 million.
Barley was threshed on 2.5 million hectares or 89% of the plan. Collected 8.5 million tons of grain at yield of 0.334 t/ha, from last year to 7.4 million tons and 0.294t/ha, respectively. The forecast barley crop remains at the level of 9-9,5 million.
Low price early in the season slowed the sale of grain, so at present traders are forced to gradually increase them to enhance trading. Over the past week, prices on the basis of CPT-port increased by 2-3 $/tn and currently are:
- feed wheat – 141 $/ton or 4050-4100 UAH/ton
- wheat 2 grade – 147-148 $/ton or 4150-4200 UAH/ton
- wheat 3 grade– 144-145 $/ton or 4100-4150 UAH/ton,
- feed barley - 133-134 $/ton or 3750-3800 UAH/ton.
The most demand is for wheat 2 grade, the price of which on the inland silos is 4000-4200 UAH/ton.
Support for grain prices from the black sea region give high prices on the European market caused by poor harvest in France, where the forecast of wheat production is once again reduced by 2.2 million tons to 28.2 million tons.