Grain prices in Ukrainian ports decreased by 2–3 dollars

The decline in prices for Ukrainian agricultural products has made them more competitive on the European Union market.

Over the week, grain prices at Ukrainian ports have decreased by an average of $2-3 due to high supply. This was reported by analysts at Spike Brokers.

This has made agriculture more competitive on the EU market. An additional factor improving the competitiveness of Ukrainian corn has been the significant strengthening of the US dollar, which increases the cost of American grain for importers. At the same time, further price reductions are necessary to significantly strengthen the position of Ukrainian products.

The sharp increase in quotes on the MATIF exchange last week was mostly speculative in nature. The physical market did not react to this. Corn prices in the EU continue to decline due to excess supply and weak demand, especially for long-term supplies.

The latest indications of buyers of export corn:

• DAP Ukraine (Odesa) — $194-196;

• DAP Ukraine (Danube) — $198-201;

• DAP Ukraine (border) — $178-180;

• FCA Ukraine (border) — €188-190;

• DAP Italy (north) — €225-230;

• DAP Netherlands (central) — €215-218.

Regarding wheat, weak demand and significant supply from leading exporters continue to put pressure on the European market. In Ukraine, prices for feed wheat have decreased, while the cost of food grain has remained almost unchanged. At the same time, farmers are holding high-protein wheat, expecting prices to rise.

Latest indications from buyers:

• DAP Ukraine (Odesa) feed — $203-205;

• DAP Ukraine (Odesa) 11.5pro — $212-214;

• DAP Romania (port) feed — 212-214 dollars;

• DAP Italy (mon.) feed — 220-225 euros.

At the beginning of the week, sunflower prices continued to grow due to limited supply and high demand from processors. The cost of sunflower oil in the ports of Odesa increased by an average of 10 dollars per week. Over the past month, the premium for high-oil sunflower has increased from 2,000 UAH to 4,000 UAH.

However, since the middle of the week, prices have stabilized, and forecasts of a possible trend reversal have appeared on the market. Some processors have tried to reduce prices, citing the fall in the cost of oils on the world market.

Latest indications from buyers:

• DAP Ukraine (plant) 46% (dry) ~570-585 dollars;

• DAP Bulgaria (center) 44% (wet) ~630-640 dollars;

• CIF Bulgaria (port) 44% (raw) ~620-630.

Soybean prices in Europe have undergone a slight correction. Demand from processors remains steadily high, but a significant supply of soybeans continues to put pressure on the market.

In Ukraine, prices continue to decline, which is due to high supply against the background of a good harvest this season.

Recently, USM wrote that Ukrainian farmers are demanding explanations from the State Customs Service about the export VAT regime, which will come into effect on December 1, 2024.