KYIV, July 27 – Ukrainian grain prices edged down in narrower ranges this week, but traders said the trend was still unclear following recent government resolutions which set strict state controls over the market.
Prices for third class wheat on an EXW basis in the regions ranged from Hr 690 ($126.9) to Hr 800 ($147.1) per ton compared to Hr 600-900 ($110.32-$165.48) per ton a week ago, they said.
“Activity on the grain market has been thin due to unclear market regulations, with the majority of market operators still not buying as they wait for prices to come down,” one analyst said.
Last month President Leonid Kuchma signed a decree aimed at boosting state control over the country’s grain movements in a bid to make the market more transparent.
But some operators and analysts forecast that the price would remain high in the near future, saying a lack of bread-making grain in this year’s crop would force farmers to raise prices.
“The share of third class wheat in this year’s wheat harvest will not exceed 20 percent, or 2.2-2.5 million tons,” said Mykola Vernytsky, senior analyst at Ukraine’s Agricultural Exchange.
Ukraine’s annual bread-making grain requirement is estimated at seven million tons.
The agriculture ministry has forecast this season’s grain crop at 24.5 million tons, including 11.2 million tons of wheat, while analysts say the crop is unlikely to be higher than 23 million tons, including 11 million tons of wheat.
