Is it true that in Ukraine there is no quality wheat?

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In June 2014, at the beginning of the «grain season» the rumors were spread that Ukraine may be lack of wheat. Trade operations with grain are in high gear, a...

In June 2014, at the beginning of the «grain season» the rumors were spread that Ukraine may be lack of wheat. Trade operations with grain are in high gear, and the June fears don’t come true: at the moment, the majority of grain traders estimate the correlation between food and fodder wheat as 50:50. Moreover, some suppliers (mainly foreign, who have business in Ukraine) notes that there are 60% of food wheat and respectively 40% of fodder available on the market. According to Valery Pekin, the Agricultural Market Analyst, it is done to reduce the difference in price of these varieties of grain.

«Rumors about 60 and 40% are spread to reduce the prices difference between fodder and food wheat, which now costs 50 dollars per ton,» — says the analyst.

The main problem on the grain market today is a significant number of fusarium wheat, which is sold in general. Grain traders «are holding» a quality product and try to get rid of the «sick» grain. So they insure themselves as the country’s situation is unstable and the hryvnia is rather shaky.

«When all poor grain will be „eaten“, then the normal, high-quality product will appear on the market. So there are no points to worry that in Ukraine there is no wheat. Of course producers are holding grain, because they consider it to be their capital. So this year the sales scheme 30-30-30 will be clearly seen. It means that one part of the grain was sold during the harvesting campaign, the second one — closer to the new year and the third part will be sold during the planting season,» — explained Valery.

According to an analyst, now the price of fodder wheat has stabilized and even has slightlyincreased (1-2 dollars), food continues to rise. However, this situation is not only in Ukraine. This is a seasonal problem throughout Europe.

PigUa.info

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