News
17.02.2016
VAT refund on export caused growing of purchase prices for grains
Since beginning of 2016, it can be observed a gradual reduction in the difference between the export price (FOB) and the internal price (EXW) on grains.
Following the data of the weekly “survey of grains and oilseeds markets" done by UCAB within the reporting week (05.02 - 12.02.2016) the grain market demonstrated rising price trend. Thus, the average purchasing prices for third class wheat and forage wheat had grew up to 4000 (+250) and 3850 (+ 200) UAH/t respectively. Barley and corn increased in cost on 100 UAH/t (up to 3600) and 300 UAH/t (up to 4000) respectively.
Significant growth (6-8% per week) happened over the past week is explained not only by the devaluation of the national currency (0.7% according to the NBU) and the stable demand from traders. Additionally, the purchasing prices were supported by introduction of the procedure of VAT refunding on grains export. The difference between the export and the internal prices for corn has decreased from 41 USD/t (at the beginning of the year) to 21 USD/t (as of February 12, 2016). Similar situation is observed on the market of wheat and barley. Increasing the purchase prices by traders has stimulated marketing of products. Compare to 2015, when the producers were on the long side of the market expecting the growth of prices, currently, the internal prices are getting closer to export prices (FOB), so the difference in 20-30 USD/t mostly is acceptable for them.
