In Ukraine, the cost of wheat increased by 15% compared to last year.
A ton of milling wheat costs in the range of 8-8.5 thousand UAH per ton, and a ton of feed wheat costs 7.3-8 thousand UAH.
According to the expert of “APK-Inform” Rodion Rybchinsky, the price is growing because the demand in foreign markets is growing. And since Ukraine exports almost 70% of the harvest, domestic prices are completely dependent on the external market conditions.
“Why are prices rising? There are a lot of macroeconomic reasons. If we take the world market, it is primarily because a number of regions this year have received less wheat, that is, this is a very serious drought in the United States, this is a drought in a large part of the Russian Federation and growth in demand from the main buyers: Asian countries and African countries increased their purchases,” Rybchinsky says.
Another reason for the rise in prices, he calls an external factor – on the one hand, demand is growing, on the other, the cost of production is increasing. Indeed, according to the State Statistics Service, the cost of agricultural production in Ukraine for the year increased by more than a third.
“A record corn harvest is expected, and this is, according to various estimates, 36-38 million tons of grain. The Ministry of Agrarian Policy predicts 37 million tons of grain, some experts call 39 million tons. The volume of supply will be quite large, therefore, on the one hand, prices may fall, on the other hand, global factors affecting the market may play,” the expert explained.
According to Rybchinsky, corn prices are now in about the same range as last year. Now corn is traded at UAH 6.6-7.3 thousand per ton, the price of sunflower is in the range of UAH 16-18 thousand/ton.