Головна Analytics Grain market reviews Grain and processed products market (14.02.22 – 18.02.22)

Grain and processed products market (14.02.22 – 18.02.22)

  • This winter, the weather conditions for wintering of crops in Ukraine are generally satisfactory, which is confirmed by the results of samples of wintering crops taken by weather stations from the fields in January. Plants have continued growing in almost all samples, according to the Ukrhydrometeorological center;
  • According to the latest information from the Ministry of Agrarian Policy, winter crops were sown on an area of ​​7.7 million hectares for the harvest of 2022, which is 0.4 million more than in 2021. In particular, winter wheat and triticale were sown on 6.5 million hectares (+0.4 million hectares), rye on 159 thousand hectares (+34 thousand hectares), barley on 1 million hectares (+45 thousand hectares) ;
  • Agrarians of Crimea have begun sowing early spring crops for the harvest of 2022, according to the occupying “Ministry of Agriculture” of the republic. As of February 18, 410 hectares of wheat and barley have been sown;
  • According to the State Customs Service, as of February 14, 40.9 million tons of grain and leguminous crops have been exported from Ukraine since the beginning of MY 2021/22, which is 10.5 million more than on the same date last season. Supplies of wheat amounted to 17.5 million tons (+4.3 million tons), barley – 5.5 million tons (+1.6 million tons), rye – 158.7 thousand tons (+157 thousand tons), corn – 17.4 million tons (+4.7 million tons). In addition, 64.8 thousand tons of grain flour (including 63.7 thousand tons of wheat) were shipped abroad, which is 25 thousand tons less than the corresponding indicator of the previous season;
  • The military exercises of the fleet of the Russian Federation, despite all the drama and seriousness of the situation, did not disrupt the work of the ports of Ukraine, said acting. Chairman of the State Enterprise “Ukrainian Sea Ports Administration” Olexandr Golodnitsky;
  • According to the Ministry of Agriculture of the Russian Federation, duties on export deliveries of Russian grain will decrease from February 23: for wheat – from the previous $92.8 to $91/ton, for barley – from $74.1 to $73.3/ton, for corn – from $52.7 to 52.2 $/ton. The established fees will be valid until March 1, 2022 inclusive;
  • The Egyptian State Agency GASC purchased 180 thousand tons of Romanian milling wheat at a tender on February 17 for delivery from April 1 to April 10, 2022. The purchase price of all three batches of 60 thousand tons each was 338.55 $ / ton on C&F basis;
  • The Algerian state grain agency OAIC purchased about 700,000 tons of food wheat of Black Sea origin at an international tender on February 17. Purchase prices ranged from $345.5-346.5/ton C&F, although according to some reports, for individual lots they reached $347/ton C&F;
  • Turkey’s Grain Agency TMO announced an international tender on February 22 for the purchase of 255,000 tons of fodder barley of arbitrary origin. In general, it is planned to purchase 9 batches of grain of 25 thousand tons and 3 batches of 10 thousand tons with supply during March 2022.

The world grain market continues to sway on the latest news from the confrontation zone on the border of Ukraine and the Russian Federation. However, while world prices fell slightly last week due to the postponement of Russian aggression and improved weather conditions in North and North America, prices for the main grain crops in Ukraine tended to increase.

According to ProAgro Group’s monitoring data, prices for wheat of all classes on the basis of primary elevators increased by an average of 50 UAH/ton during the week, while in the ports they remained without noticeable changes. At the same time, the price of foreign trade contracts for food wheat, the export program of which is being completed, at FOB / Black Sea ports increased within the range of 1-3 $ / ton over the past week, while fodder wheat, on the contrary, lost about the same price.

Along with another increase in the price of Ukrainian corn in the export direction – by an average of $ 1 / ton over the past week – domestic prices for grain in elevators remained at the same level due to sufficient supply, although in ports grain rose in price by an average of 50 UAH /ton.

Stable both on the basis of EXW and on the CPT-port last week were prices for barley, which is gradually withdrawing from the trade turnover due to the lack of supply of large commodity lots. At the same time, the export price for FOB/Ukraine rose by an average of $2/ton last week.

Somewhat different were the price trends on the basis of the CPT-enterprise. Over the past week, processors have reduced purchase prices for wheat by an average of 50 UAH/ton, but increased them by 50 UAH/ton for barley and 100 UAH/ton for corn, trying not to concede in competition for these grains with traders and exporters. At the same time, prices for wheat flour of extra and first class, after a preliminary increase last week, slightly lost back – by an average of 100 UAH/ton, while the price of wheat bran remained stable.

z-21.02-eng