Ukraine: agrarians do not want to sell grains because of low prices and problems with winter crops sowings




To date, the Ukrainian grain market showed low rates of trading and purchasing activity. Despite the fact that many buyers were expected for increasing of the number and volumes of offers for milling and feed wheat, barley and rye from grain holders before the New Year holidays, the number of grain offers still did not significantly increase. Many agricultural producers still do not hurry to sell these grains. Agrarians called unacceptably low bid prices, and poor germination of winter crops as the main reasons for development of the situation.

We should also take into account production volumes of maize as the significant factor for development of the situation. Thus, agricultural producers, which have volumes of the grain, are considered to replenish own working capital at the expense of maize selling as more appropriate way, rather than selling of other crops.

Such development leads to the fact that many grain processors have difficulties in forming of the adequate stocks of feed and milling grains, indicating that they are able to purchase mostly small grain volumes. Only in rare cases, buyers are informed about arriving of large-scale volumes of grains (mostly it comes to feed crops), but according to them, such sales are caused by urgent necessity of agrarians in cash. In most cases, the sold grain lots vary within the range of 100-300 tonnes.

But consumers are not ready to significantly increase the bid prices for activation of the rates of incoming of wheat, barley and rye volumes on the market, expecting that since beginning of the new calendar year some part of agrarians will increase own selling rates of grains.

So, most often the purchasing prices for milling wheat total 1700-1800 UAH/t, rye - 1600-1700 UAH/t, wheat in group B and 6-grade wheat - 1450-1600 UAH/t, feed barley - 1600-1800 UAH/t (with cost of delivery to the enterprise).

At the same time, agricultural producers are set to restrain grain selling as long as their prices will increase. In particular, milling wheat - up to 1900-2000 UAH/t, rye - 1800 UAH/t, feed wheat - 1600 UAH/t, barley - to 1800 UAH/t (excluding shipping charges).

Market participants will be able to receive more details on sales strategies and preferences concerning crops sowing by taking part in the conference "AgroResurcy – 2012", to be held on February 9, 2012, in Kiev.