The ratio between milling wheat and feed wheat in the grain production structure for the harvest-2016 in Ukraine is estimated at 55% and 45% respectively, which exceeds the similar indices of 2015, the State Enterprise State Research and Information Center for Monitoring International Commodity Markets (Derzhzovnishinform) declared.
According to market operators, in 2015 the ratio was exactly opposite: milling wheat formed 45% of the harvest volumes, and feed wheat – 55%. The good result heavily lies on the weather conditions during the spring vegetation period of early grain crops, the analysts explained.
According to Derzhzovnishinform, traders are expecting the growth of prices for feed wheat in the long run, based on their understanding of the market from many previous seasons, because the majority of forward contracts are entered for feed wheat of the grades 4-6.
“Bearing this in mind, demand for such grains by export-focused companies is expected to be high, which could act as an accelerant for grain price growth in the domestic market. Forage market can be extensively influenced by the related corn market, should the case be that the price for corn remains high it is quite foreseeable that the customers looking for animal feed will switch to a cheaper option such as wheat, thereby heating up demand and eventually pushing the prices up”, the press-service explained. (APK-Inform/Business World Magazine)