According to APK-Inform, Ukrainian processors have been increasing the offer prices of wheat flour since the start of the week.
«After some stabilization, the upward trend returned to the Ukrainian market of wheat flour mainly due to the preceding growth of prices of raw materials that had pushed the production costs up. Traditionally, the prices were supposed by the sharp growth of export prices of 12.5% wheat that exceeded 300 USD/t FOB and 8500 UAH/t CPT-port amid higher demand from importers, delay of harvesting campaign and unclear prospects of production (including quality concerns) in some key exporting countries», - commented Anna Tanskaya, the head of the organizing committee of the conference and the head of the department of local markets with APK-Inform.
As of September 9, the offer prices of top-grade and 1 grade flour totaled 9800-11600 and 9500-11300 UAH/t EXW correspondingly, up by average 200-400 UAH/t or even 500-600 UAH/t compared to the end of the last week.
The expert noted that the moderate demand for flour and the competition from cheaper Belarusian flour limited more significant increase of the prices.
“All of this supported the export prices f Ukrainian flour that varied from 300 to 350 USD/t FCA for top-grade product. At the same time, the demand from importers is moderate. Ukraine has exported about 24 thsd tonnes of flour since the start of the season compared to 35.2 thsd tonnes and 45.3 thsd tonnes in July-August of 2020/21 and 2019/20 MY correspondingly. Ahead of the coming USDA’s report, the prices stabilized somehow. Besides, the wheat balance remains quite tight in 8 largest exporting countries. Stocks-to-use ratio is expected to be the lowest in 20 years! It will continue to fuel the prices along with remaining quality concerns, despite the optimistic forecasts in some producing countries”, - A. Tanskaya emphasized.
You can get more detailed information about the further market development, prospects for 2021/22 MY for grain and by-products markets, quality of new-crop Ukrainian wheat and many other within ХIX international conference Grain Processors Forum-2021, which will be held in Odessa (Premier Hotel Odesa) on September 23-25.