News
26.10.2011
Corn price in Ukraine ten days before cancellation of export duties grew by one fourth, says UAC
After the cancelation of corn and wheat exports duties by the Ukrainian parliament and before the decision took effect, from October 12 to October 21, the price of a tonne of corn grew by UAH 330-350 on the domestic market on the Ex Works terms of delivery (Central Ukraine), to UAH 1,600-1,630, reads a report of the Ukrainian Agrarian Confederation (UAC) issued on Monday.
"The obvious is a trend of a sharp increase in corn sales under the pressure of the 'corn gross output' was stimulated by the increase of the price, which producers had become tired of waiting for. A supporting factor is less competition from other corn exporting countries in the region compared to the wheat segment of the grain market," reads the report, citing UAC Director General, Serhiy Stoyanov.
The UAC said that irrespective of the cancellation of the export duties, the prices of bread wheat (third class) and fodder wheat (four-six classes) remained unchanged at UAH 1,300-1,350 per tonne and UAH 1,200-1,250 per tonne respectively, depending on the distance to ports.
"The reason is weak demand from Ukrainian exporters linked to a defeat in competition with Russian in the last three months, during which Russians managed to fill the grain bins of Black Sea region buyers," Stoyanov said.
The prices of barley on the domestic market also did not change.
"Demand at local elevators of exporter companies is lower than for wheat: the prices are UAH 1,200-1,400 per tonne, depending on the distance to ports," reads the report.
"The conclusion is that export duties 'preserved' barley for domestic consumption and buying prices of barley were frozen at a level deeply unprofitable for producers," Stoyanov said.
