By KYIV. Dec 8 (Interfax-Ukraine) – Sabotage by Russian inspectors in the Joint Coordination Centre (JCC) of inspections of ships heading to Ukrainian Black Sea ports leads to low efficiency of their inspection – in a week, about 70 grain carriers accumulated at the entrance to the grain corridor, and 30 – at the exit.
According to the brokerage company Spike Brokers (Kyiv) on the Telegram channel, grain traders are forced to include more and more costs for vessel demurrage (up to 30 days) in the price of agricultural products, which "kills" the benefit for the agricultural producer. In this regard, farmers are actively exporting goods by land, strengthening trade relations with end consumers in Europe.
According to the brokerage company, over the past week it concluded deals for the supply of feed wheat from Ukraine to Poland for December-February for $237/tonne, rapeseed (non-GMO) to Germany – EUR 595/tonne, soybeans (GMO) to deep-water ports of Ukraine – $415/tonne. No sunflower sales figures have been released this week.
It clarified that domestic prices for corn stabilized in the range of $205-230, depending on the place of delivery – to the port or to land border crossings. Exchange quotations of wheat this week are in the nature of "inversion" (reverse market, when spot is more expensive than contracts for future months). The latest indications of buyers for the past week: DAP Poland (border) $210-220, DAP Turkey (port) – $260-270, and DAP Romania (port) – $255-265.
"The proximity of the holiday month creates certain restrictions on the efficiency of cargo handling in Europe. Most buyers in Europe do not want to receive cargo by road/rail between December 20 and January 5. In the direction of ports, a significant decrease in customer demand is expected until the efficiency of ship handling improves," Spike Brokers emphasized in the message.
In turn, with low selling prices for wheat in Ukraine and the high cost of its logistics, domestic producers receive significant damage, which significantly constrains its supply. Recent indications of buyers: DAP Poland (border) – $230-245, DAP Hungary (border) – $230-242, and DAP Ukraine (Danube ports) – $240-245.
According to the trader, the purchase prices of oil extraction plants in Ukraine have adjusted from $450 to $350 without VAT per tonne of sunflower delivered to the plant: demand for it in Ukraine is saturated amid a drop in prices for vegetable oil to $200 per tonne. Thus, while maintaining stable prices for oil in foreign markets, there will be an increase in the supply of sunflower for export.
Recent indications of sunflower seed buyers: DAP Bulgaria (center) – $540-560, DAP Romania (center) – $500-530, and DAP Hungary (center) – $540-555.
In addition, the saturation of the EU market with rapeseed from Ukraine and Eastern European countries does not give any chances for price strengthening at the moment. Recent indications of buyers: DAP Germany (east) – EUR 550-560, and DAP Hungary (center) – EUR 540-550.
"The soybean market remains at last week’s levels. Producers are left with good soybean balances for sale," the brokerage company said.
Latest indications of soybean buyers for the week: non-GMO DAP Italy – EUR 545-550, and GMO DAP Italy (south) – EUR 545-550.
