Головна Analytics Grain market reviews Grain and processed products market (01.24.22 ‒ 01.28.22)

Grain and processed products market (01.24.22 ‒ 01.28.22)

  • During the second decade of January, winter crops in Ukraine were in a state of winter dormancy. At the beginning of the decade, in the vast majority of the country’s territory, the depth of snow cover did not exceed 1-5 cm or was absent altogether. At the end of the decade, in most areas of Sumy, Poltava, in some places of the Chernihiv region, the formation of an ice crust with a thickness of 2 to 14 mm was noted;
  • According to the State Customs Service, as of January 26, 36.9 million tons of grain and leguminous crops have been exported from Ukraine since the beginning of MY 2021/22, which is 8.5 million more than on the same date last season. Deliveries of wheat amounted to 16.7 million tons (+3.8 million), barley – 5.4 million tons (+1.5 million), rye – 152 thousand tons (+150.3 thousand), corn – 14.4 million tons (+3.3 million). In addition, 62.6 thousand tons of grain flour (including 61.5 thousand tons of wheat flour) were delivered abroad, which is 20.5 thousand tons less than the corresponding indicator of the previous season;
  • The European Union has set a quota for the import of Ukrainian wheat for February in the amount of 77.8 thousand tons within the annual duty-free quota of 1 million tons. The import of 1.2 thousand tons of Ukrainian barley out of a total volume of 350 thousand tons was also agreed. At the same time, in January, the EU allowed duty-free import from Ukraine of 69.6 thousand tons of wheat and 19.6 thousand tons of barley;
  • According to the January MARS report, in most regions of Europe, winter crops were in good condition, which was due to higher than usual atmospheric temperatures, as well as a sufficient amount of seasonal precipitation that has fallen here since the beginning of winter;
  • According to the Ministry of Agriculture of the Russian Federation, from February 2, export duties on Russian wheat will decrease from the previous $95.8 to $93.9/ton, on corn supplies – from $50.6 to $49.6/ton. At the same time, the export duty on barley supplies will increase from $74.4 to $74.6/ton. The established amounts of customs duties will be valid until February 8;
  • According to IHS Market forecasts, the US wheat planting area in 2022 will be 48.157 million acres, including growth under winter wheat from 33.648 million acres to 34.397 million acres compared to the previous season, under ravine – from 11.42 million acres, under durum wheat up to 1.75 million acres;
  • The State Grain Agency of Algeria OAIC at the tender on January 26 purchased from 60 to 80 thousand tons of food wheat from the Black Sea region at a price of about $ 375 / ton C&F with delivery from February 16 to March 31.
  • On January 28, the Egyptian government agency GASC held an international tender for the purchase of milling wheat of random origin with supply from March 5 to 26, 2022. At the time of preparing the review, the results of the tender are not yet known. The previous tender for the purchase of wheat was held by GASC on December 29th.

Last week, the market of basic grain crops in Ukraine continued to strengthen, which was facilitated by both its internal situation, in particular, the advantage of demand over supply, and the continued rapid depreciation of the national currency. Safe risks, the withdrawal of foreign capital, as well as the strengthening of the US dollar against all major world currencies, led to the fact that the hryvnia lost more than 60 kopecks in the week since January 21 – last Friday, the NBU set its rate at UAH 28.99 / USD.

Such a significant subsidence of the exchange rate, as well as the need of exporters for stable purchase volumes, led to the fact that, according to monitoring data from ProAgro Group, prices for food wheat on the basis of primary elevators during the week increased by 175-200 UAH per ton, for feed – by 100 UAH/ton. In ports, the rise in price amounted to 100 UAH/ton and 50 UAH/ton, respectively.

At the same time, the export price for wheat with a protein content of 12.5% ​​at FOB/Black Sea ports fell by 2 $/ton over the past week, and for feed increased by 2 $/ton. According to exporters, about 90% of food grains have already been exported, given that feed wheat will dominate in export deliveries in the future.

Prices for corn rose significantly last week: at domestic elevators, prices for it increased by an average of 200 UAH/ton, in ports – by 150 UAH/ton, FOB supply added 4 $/ton, where its price reached a three-month high.

On average, by 50 UAH/ton last week rose price for wheat on the basis of processors. At the same time, the price of corn at the CPT-enterprise increased twice as much – by 100 UAH/ton, while barley remained at the same price. Also, last week, the supply prices of wheat flour of extra and first class increased by an average of 100 UAH / ton, while wheat bran increased in price by 50 UAH / ton.

z-31.01-eng