Analytical digest from 23.07.2020

Food wheat

Market trends

    In the stock markets there is a gradual recovery of food wheat price levels. At the same time, the Ukrainian market reacts to this fact inactively.

      The gradual advancement of the harvesting campaign contributes to an increase in the supply of small batches of grain to the domestic market. Despite this, processing companies note that high competition and the currency factor contribute to rising prices. So, since Tuesday the prices of the processing enterprises taking into account the cost of delivery have grown to 6150 UAH/ton.

     Compared to Tuesday of this week, currency prices in deep-sea ports decreased. At the same time, the devaluation of the hryvnia continued to support hryvnia export prices.

Forecasts 

• Support in hryvnia prices will continue to be provided by the currency factor.
• However, foreign exchange prices are declining due to declining demand in world markets.

Fodder wheat

Market trends 

     Reducing the number of grain offers contributed to rising prices for it. At the same time, the growth rate decreased compared to the end of the previous week. In addition, the continued weakening of the national currency against the US dollar has a corresponding effect on prices.

     Processing companies often adjusted prices upwards. On average, since Tuesday, purchase prices have increased by 50–100 UAH/ton and are in the range of 5000–6000 UAH/ton, CPT-enterprise.

Forecasts 

• The rise in prices will continue in the short term until the close of trading positions.

Fodder barley

Market trends

     The number of feed barley offers on the domestic market remained low. However, this fact did not affect the price range of processing enterprises, which was formed on the market at the beginning of this week: 4500–5400 UAH/ton, CPT enterprise.

     Export prices mostly rose.

Forecasts 

• Prices will continue to rise.

 Fodder corn

Market trends 

     The number of grain harvest proposals in 2019 continued to decline. Prices of processing enterprises were announced in the range of 4650–5450 UAH/ton, CPT enterprise.

     The prices of export-oriented companies for corn in the 2020 harvest often remained within the previously formed limits, except for some adjustments of hryvnia prices.

Forecasts 

• Prices will continue to fluctuate within previously formed limits.