Traders are not glad with prices in the new season. World grain production continues to set new records, and puts pressure on prices. CBOT wheat futures fell to a ten-year low affecting the Black Sea export prices. Compared with early September 2015, grain prices lost no less than $10/MT.
Given that Ukraine exports more than 65% of all produced grain, reduction of world prices would have triggered some decrease in grain cost in the domestic market. But in fact, domestic prices strengthened.
As a result, a spread between domestic prices at inland silos and on-board prices declined to a record low, and currently equals only $6-10/MT, compared with $50-60/MT in 2013.
Moreover, domestic CPT-port prices are even higher than export FOB prices. (UkrAgroConsult/Business World Magazine)
